The great Bleacher Report site to be bought for 200 million!!!

young-gun11 · Jun 26, 2012

SixToe said:

The lines between what's crap and what's quality are blurred when respected newspapers such as Tribune Co's L.A. Times, Chicago Tribune and Orlando Sentinel all promote and link to Bleacher Report content -- as they do.
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Tribune isn't linking because of the quality of B/R, and the quality is rancid dogshit in the hot sun under a pile of fetid cow vomit.

Tribune links because of the potential number of eyes that might come to their site for legitimate information. That's it.

It merely is quantity over quality with anything associated with B/R. High value? Great. Y'all hit a long ball in the business world. But don't confuse the content's quality with anything credible, legitimate or 'great' because it's not.
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There are more than a handful of people who work in the newspaper industry who have written on B/R. There are a crap ton of journalism degrees on that site as well. While 85% of it is crap, there are some credible writers on the site.

imjustagirl · Jun 26, 2012

LongTimeListener said:

Yeah, that's what I was getting at with the valuation-by-dartboard statement.

The other thing about this is there's an assumption that SI is right to be buying B/R for $200 million. Take Patch for example, though -- just because Tim Armstrong has sunk hundreds of millions of dollars into it doesn't mean Patch is good or even financially viable, it just means Tim Armstrong had a dangerous combination of arrogance and cash. He keeps throwing good money after bad, but that still doesn't mean Patch has figured this out.

In the case of SI, their history in the online world would actually suggest that they don't know what the hell they are doing and that this is just going to be more good money after bad.
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Got that backward. Turner is in talks, according to that article, AFTER splitting with SI.

LongTimeListener · Jun 26, 2012

Ah, OK. My bad. But I would transfer the opinion to Turner as well -- they haven't exactly set the online world afire with their business acumen and long-term vision.

Cigar56 · Jun 26, 2012

rmanfredi said:

Valuation doesn't equate to "value," either, something that some people don't seem to get in this thread. Demand Media's initial IPO went for $17 a share. Much like Bleacher Report, it's based on a model of turning out a high volume of extremely cheap, low-quality content in order to drive advertising revenue. Since the IPO in Jaunary, Demand Media's stock value has gone down about 37 percent and they recently kicked their CFO to the curb. Since its peak, the valuation of Demand Media went down about one billion dollars.

What happened? Wall Street and investors realized that page views don't lead to profitability if you don't have a model in place to monetize those page views. In Demand Media's case, they were seriously hurt by Google's latest changes to their SEO, changes that specifically punished sites that create low-quality content and knocked Demand's content off of the first page of most search results. Bleacher Report would be in a similar bind if Google decides that their content is not "high-quality" or "relevant" and changes their algorithms to keep their content from appearing at the top of any news search.

Also, link-baiting to get someone to open your slideshow might get a page view, but unless those are being converted into click-throughs on advertising and people spending significant time on the site instead of reading the story and immediately close it, that page view is basically useless to advertisers. Any online content company struggles with this and I don't see how Bleacher Report is attacking this problem any differently than any other content site.

So the bottom line is: just because a company is "valued" at a certain price doesn't mean it's "worth" a certain price. And just because someone is willing to buy a site at a certain price doesn't make it a good deal.
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An asset -- like your house -- is worth only what someone will pay for it. If Turner accepts a $200 million valuation on Bleacher Report and pays it, then that's the value of Bleacher Report. The next time around it could be worth less or more. Worth is always determined by the buyer. Whether it is a good deal or bad doesn't matter. At the time of the transaction the property is worth what the buyer chose to pay and the seller accepted.

playthrough · Jun 26, 2012

Cigar56 said:

rmanfredi said:

Valuation doesn't equate to "value," either, something that some people don't seem to get in this thread. Demand Media's initial IPO went for $17 a share. Much like Bleacher Report, it's based on a model of turning out a high volume of extremely cheap, low-quality content in order to drive advertising revenue. Since the IPO in Jaunary, Demand Media's stock value has gone down about 37 percent and they recently kicked their CFO to the curb. Since its peak, the valuation of Demand Media went down about one billion dollars.

What happened? Wall Street and investors realized that page views don't lead to profitability if you don't have a model in place to monetize those page views. In Demand Media's case, they were seriously hurt by Google's latest changes to their SEO, changes that specifically punished sites that create low-quality content and knocked Demand's content off of the first page of most search results. Bleacher Report would be in a similar bind if Google decides that their content is not "high-quality" or "relevant" and changes their algorithms to keep their content from appearing at the top of any news search.

Also, link-baiting to get someone to open your slideshow might get a page view, but unless those are being converted into click-throughs on advertising and people spending significant time on the site instead of reading the story and immediately close it, that page view is basically useless to advertisers. Any online content company struggles with this and I don't see how Bleacher Report is attacking this problem any differently than any other content site.

So the bottom line is: just because a company is "valued" at a certain price doesn't mean it's "worth" a certain price. And just because someone is willing to buy a site at a certain price doesn't make it a good deal.
Click to expand...

An asset -- like your house -- is worth only what someone will pay for it. If Turner accepts a $200 million valuation on Bleacher Report and pays it, then that's the value of Bleacher Report. The next time around it could be worth less or more. Worth is always determined by the buyer. Whether it is a good deal or bad doesn't matter. At the time of the transaction the property is worth what the buyer chose to pay and the seller accepted.
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But people are still entitled to opine that it's money flushed down the toilet, just as you are convinced it was $200 million well spent.

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The great Bleacher Report site to be bought for 200 million!!!

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The great Bleacher Report site to be bought for 200 million!!!

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