An AdWeek headline shouts out the question that lots of folks are asking: Is BuzzFeed worth $1 BILLION? They point out that “a startup asking for the b-word isn’t a foreign concept in today’s market. In April 2012, Facebook forked over $1 billion for Instagram. Just this past February, the Palo Alto, Calif. company opened up the money bags again and forked over $16 billion for texting application What’sApp. Yahoo brought Tumblr on board for $1.1 billion.”
But here’s what some folks have to say about BuzzFeed’s self-proclaimed valuation:
*January 2013, the Wall Street Journal reported that CEO Jonah Peretti said his company was worth a lofty $1 billion after it raised $19 million in venture capital. However, one source said $200 million was more realistic.
* Noted analysts are even blunter. Andrew Frank, a vp distinguished analyst at Gartner, added that it’s hard to give BuzzFeed a dollar figure, but the $1 billion number thrown out there isn’t “outrageous.” Forrester principal analyst James McQuivey was more adamant that BuzzFeed would never be worth $1 billion simply because the majority of it’s content simply isn’t original.
What do you think? Let us know.