Category: Facebook, General

Congratulations Connected Ventures

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This is huge news. The guys from Connected Ventures have sold a majority stake in their company to Barry Diller’s Interactive Corporate.

connected ventures

These guys are the creators of:

college humor
College Humor: funny content

bustedtees
Busted Tees: funny t-shirts

vimeo
Vimeo: community video sharing

Nice work Zach and Jacob.

My thoughts on the deal:

  1. I wonder how the guys will change working for someone else now. The guys were adamant about not getting jobs after college so I wonder how long they will stay with Connected Ventures.
  2. Paul Graham is definitely right in that the new economy is to buy talent instead of hire.
  3. IAC was very smart in acquiring maybe not a huge company but a very influential one among young trendsetters.
  4. How long will Facebook hold out for? The economy is very ripe for acquisition.
  5. I value the deal between $30-50 million dollars which is not a bad pay day.

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11 Responses to “Congratulations Connected Ventures”

  • Noah Winecoff
    August 15th, 2006
    9:23 am

    I really want one of those scrolling LED belt buckles that they advertise on BustedTees.com. I think I will spoil myself with one soon and use it to advertise Indiefy.com and then I will make fun of them when I catch them staring at my crotch. Its the simple things in life…

  • Jason L. Baptiste
    August 15th, 2006
    10:11 am

    Sweeeet. These guys kick ass, and know how to run a company. They definitely deserve it, and I think IAC is a nice fit. 30-50 million total valuation of the company or 30-50 million for the 51% stake IAC bought? Talk to you later, back to work.

    -JLB

  • mike oliver
    August 15th, 2006
    11:31 am

    Hey just curious how you came to the $30-50 million dollar figure?

  • Nii A.
    August 15th, 2006
    1:00 pm

    30-50 million… What are you basing your valuation on?
    -N

  • Noah Kagan
    August 15th, 2006
    5:45 pm

    honestly this was back of the envelope math.

    1- college demographic cpms / ad rates are very high
    2- threadless.com makes a crapload like bustedtees.com off t-shirt sales
    3- they have sold a popular book
    4- they have other deals and businesses in the works
    5- they have tons of users and traffic
    6- they are really sexy.

    bamn. final asking price. ~$30 million total. final answer.

    that means each of the 4 partners probably cashed around $5-7 million each. not bad for some guys 3 years out of college.

  • Sri
    August 15th, 2006
    8:28 pm

    I feel like quitting my daytime job…

    Is it just me or does anyone out there get jealous? Im happy for those guys but at the same time very envious….im sure they put in tons of hard work, took lots of risks etc…..

    You know what….im gonna do it! Im gonna quit my new job (which I start on Friday this week by the way) after 9 months and work for myself. Dammit, I had enough.

    Anyone wants to join me?

    Sri

  • Brian Breslin
    August 15th, 2006
    9:23 pm

    wow, good job for Zach and the gang. So noah, how high ARE college demographic CPMs?

  • Nii A.
    August 15th, 2006
    11:28 pm

    While I don’t disagree w/ Noah’s napkin valuation, I can’t imagine college CPMs higher than 1.5-3 for even college humor…

  • Sharpshoot
    August 16th, 2006
    7:34 am

    I’m with you on tht one Sri. Develop your product part time, get traction then quit job / take sabatical. See you on the other side :)

  • Noah Kagan
    August 16th, 2006
    11:03 am

    Just found this article saying the deal was at least $20 million+

    http://gawker.com/news/top/barry-diller-officially-penetrates-boys-of-collegehumor-194284.php

    noah

  • PostBubble
    August 17th, 2006
    12:51 am

    Postbubble Podcast Episode 19 - Thursday, August 17th, 2006…

    Here is our podcast for Thursday, August 17th, 2006. Today we cover YouTube’s brief unplanned outage, Wordpress.com’s 1st birthday, A Delicious redesign, and IAC’s latest purchase.
    For those of you that want a separate feed for our p…

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