Wednesday, February 15, 2006

iVillage bids likely to come in low - sources Reuters.com

"A $700 million price would imply an enterprise value of 24 to 29 times iVillage's estimated earnings before interest, taxes, depreciation and amortization (EBITDA) for 2006, far more than the lofty multiples used to value Ask Jeeves, Intermix and About.com. About.com was sold for 23 times estimated EBITDA and IAC's AskJeeves purchase valued the Web portal at 15 times its cash flow.
WHO'LL TAKE A VILLAGE?
iVillage.com, the No. 1 women's community Web site, reaches nearly 11 percent of U.S. women aged 18 and older each month, according to comScore Media Metrix. The portal offers health, parenting and fashion advice and publishes a broad range of entertainment news aimed toward women, who now account for close to 60 percent of prime-time television viewers and make the majority of purchasing and entertainment decisions.
Shares of iVillage, which bought Women.com Networks Inc. in 2001, jumped 12 percent from their Monday closing price on Tuesday after the company said revenue grew while its quarterly net income more than tripled. The rally pulled iVillage's current market value up to about $560 million.
General Electric Co.'s (GE.N: Quote, Profile, Research) NBC Universal unit and Time Warner Inc.'s (TWX.N: Quote, Profile, Research) America Online unit have already made investments at points in the women's network."

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