Wednesday, September 27, 2006

Photobucket: $200M - $500M valuation

From the Photobucket official blog:
"Photobucket has more users then the....
Distance from Earth to Venus -- 25,000,000 miles
Number of acres of lawns in the U.S. -- 25,000,000 acres
Annual number of lightning strikes globally -- 25,000,000
Population of Venezuela -- 25,000,000
Population of Uzbekistan -- 25,000,000
Amount of wool clipped in Wyoming every year -- 25,000,000 lbs.
Number of riders annually on all Amtrak trains -- 25,000,000
Population of Iraq (2004) -- 24,500,000
Population of Texas -- 20,851,820
Population of Australia -- 20,090,437
Population of New York -- 18,976,457
Five times the population of Colorado -- 4,301,261"

and ZERO dollars back to investors to show for it

Notes: Likely Acquisition range: $200-$500M assuming each user is valued at around $8 - $20. Skype, whose user base was obvioulsy more valuable than Photobucket's was valued at around $20-30 per member at time of acquisition. Another comparable is Shutterfly whose upciming IPO would give the company a market cap of approximately $330M, assuming $14 per share price. Other comps: Flickr/Yahoo $30M; Snapfish/HP for $200M plus. One can almost think of Photobucket as a play on Youtube, Flickr, Myspace. To add value to an acquiror (say NewsCorp, Viacom, Yahoo, MSFT), the company needs to incorporate community - they are a web 1.0 company w/ web 2.0 type traffic growth.

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