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 © 2013 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.
More than 70 percent of the Class of 2012 took out loans. Oh, and they're seeing high unemployment, too.
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
- 5 myths about late payments and your FICO scores
- Auto loan interest rates hit record low
- Should the US scrap the debt ceiling?
- Will new mortgage rules mean fewer lenders?
- Why GM, Chrysler are riding high
- Survey: Dashboard lights fail to send right message
- Can you opt out of Medicare?
[BRIEFING.COM] The drive for five continued today and it was a success. For the fifth straight session, the S&P 500 ended lower. Like the previous four sessions, though, the losses were fairly modest in scope. The S&P 500 declined 0.4%, bringing its total loss for the five sessions to 22 points or 1.2%. All in all, that still qualifies as a pretty tame slide considering the S&P 500 had risen 150 points, or 9.1%, over the previous eight weeks.
Today's ... More
More Market News
The retailer labels the character's fake memoir as non-fiction. This comes weeks after it categorized the the Bible as fiction.