Amazon buys Goodreads, but for how much?
Bloomberg pegs the deal at close to $1 billion, while the AllThingsD site estimates it as $200 million at most.
Bloomberg Businessweek estimates that Amazon paid "close to, but not quite, $1 billion" for the site while Kara Swisher of the AllThingsD blog pegs the acquisition price at about $150 million, or up to $200 million when factoring in potential incentive payments.
Seeing such a huge difference in price of a potential deal is strange considering that news about mergers and acquisitions often is leaked with the precision of a Swiss watch. Media sites rarely differ much on the price.
The Businessweek article is speculative, basing the Goodreads price on the value of LinkedIn (LNKD), a publicly traded company with 202 million active accounts valued by investors at $95 per user. Based on recent financing rounds, Facebook's (FB) running value is $58 per user, while Pinterest and Twitter are valued at about $50 a head, the article says.
"Working with that range, Goodreads’ 16 million users at $55 each would add up to a sticker price of $880 million," Businessweek says. "Of course, that’s an overly simple, back-of-the-envelope estimate. Any decent I-banker would try to push that valuation on two fronts: the growth rate of the network and its potential for monetization."
Swisher, a veteran tech journalist, sees things much differently, saying the Businessweek figure is simply wrong. "I did actual reporting with seven excellent sources," she told MSN Money in an email. She said she wasn't sure how much of the deal was in cash and stock, though her sources say most of it was cash.
Amazon, the largest e-commerce company, didn't disclose the price and couldn't be reached for comment. Efforts to reach Kyle Stock, the Businessweek reporter who wrote the article, were unsuccessful.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
More Market News
The solid report comes a month after the retailer closed all of its Canadian operations.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'