The email newsletter Daily Candy, now going on its eighth year, got a sweet deal this week. Comcast is buying the company for $125 million. Rumors were that Comcast would pay far less - around $75 million and it’s many times over their revenue.The pithy newsletters focus on what’s hip and fashionable - marketing products to young women - and drawing national advertisers. Last year they expanded to include a kid’s edition aimed at well keeled moms. In 2006 the newsletters totaled around 2.5 million subscribers.But by the looks of the site it's self it looks pretty goofy to fetch 125 million.
Daily Candy was launched in 2000 by Dany Levy with money from savings ($50,000) and investment capital ($250,000 from family and friends). In 2003, they got a further investment from Pilot Group for $3.5 million and a majority share.
Last year PaidContent questioned whether the company would stick around when the tastes of the trendy can be so fickle. I think this shows that eight years later the concept has aged well.
Note: Even I couldn’t believe it sold for $125 million - I mite would have offered them 5 million for the site.
11:13 AM 1 comment