The a:c Devalues Gawker Media
Our mailbag was full of advice and scorn about the finger-in-the-wind model we used to establish that Gawker Media’s valuation could be reasonable at $274M. Based on input from superior mathematical minds – we’re paid to be scribes not auditors – we have summarily decided to downgrade Gawker Media’s base value to one-fourth $274M or $68.5M. The reason for the downgrade is that we were under the impression that Gawker Media enjoyed 28.5M monthly unique visitors, when in fact that number represents total visits. A rule of thumb is to divide total visits by 4 to get to unique visits.
However, we stand by our finger-in-the-wind model and urge the HBS-MBA-Goldman flunkies to give it a try.
Read: Can Gawker Media Be Worth $274 Million? – [a:c]