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How much is TheJournal.ie website worth do you think?

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  • 16-04-2015 12:38pm
    #1
    christiernan1
    Registered Users Posts: 7 ✭


    Hi everyone,

    As a matter of interest, how much do you think TheJournal.ie or a similar website is worth?

    How's it calculated? Ad revenue, userbase, social media fanbase?

    Thanks,
    Chris


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    #2
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    christiernan1 wrote: »
    Hi everyone,

    As a matter of interest, how much do you think TheJournal.ie or a similar website is worth?

    How's it calculated? Ad revenue, userbase, social media fanbase?

    Thanks,
    Chris

    Based on profit/loss and turnover and possibly goodwill


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    #3
    christiernan1
    Registered Users Posts: 7 ✭christiernan1


    What about the fact they've got over 200,000 Facebook followers and probably over 2 million visitors a month? Does that not all come into account? I'd imagine their ad revenue wouldn't even cover their wage bill


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    #4
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    christiernan1 wrote: »
    What about the fact they've got over 200,000 Facebook followers and probably over 2 million visitors a month? Does that not all come into account? I'd imagine their ad revenue wouldn't even cover their wage bill

    Followers would be part of the goodwill. The ability of the company to grow.

    Though I am not sure exactly how much everything is worth. In realtion to the overall value of a company.


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    #5
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    Elmo wrote: »
    Followers would be part of the goodwill. The ability of the company to grow.

    Though I am not sure exactly how much everything is worth. In realtion to the overall value of a company.

    On reading up on goodwill it might make up most of the value of the journal, as they possibly have very few other assets.


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    #6
    christiernan1
    Registered Users Posts: 7 ✭christiernan1


    Thanks but could you guess how much all that is worth in total? The ability to grow, the audience reach they have etc

    Basically if they put thejournal.ie up for sale, how much would they get? Actually come to think of it - where would you even sell such a business?


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    #7
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    christiernan1 wrote: »
    Thanks but could you guess how much all that is worth in total? The ability to grow, the audience reach they have etc

    Basically if they put thejournal.ie up for sale, how much would they get? Actually come to think of it - where would you even sell such a business?

    They might try to raise funds though equity partners, or find a partnership, by selling part of the business. They might have interest from a bigger media player that maybe willing buy the service.

    You could get the CRO accounts for the company if they are available. Journal Media Ltd. 2015 Registered in Dublin, registration number: 483623. Registered office: 3rd floor, Latin Hall, Golden Lane, Dublin 8. think it cost 3euro or something.


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    #8
    christiernan1
    Registered Users Posts: 7 ✭christiernan1


    Thanks for the info. Could you stagger a guess at what it's worth? How do people even get equity partners? It's an interesting concept.


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    #9
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    christiernan1 wrote: »
    Thanks for the info. Could you stagger a guess at what it's worth? How do people even get equity partners? It's an interesting concept.

    No Idea someone else here might know.

    Best example of an Equity buyout is TV3. Bought the group in 2006 for €265m, it was recently valued at €140m but both are unrealistic prices.

    TV3 in 1998 had set up costs of IR£20m and 45% was bought by ITV in 2001 for €18m!!!


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    #10
    flogen
    Moderators, Society & Culture Moderators Posts: 10,243 Mod ✭✭✭✭flogen


    It's extremely difficult to put a value on any business - especially when trying to put a price on something as intangible as the worth of an audience.

    It doesn't help that there hasn't been much acquisition activity in the Irish online news market, and so little for you to easily compare against.

    If you really want to come up with a figure, you could probably start by gathering two sets of data:

    1) The average monthly hits/clicks/impressions of The Journal, its number of Facebook likes & Twitter follows etc - along with the level of engagement each of these tends to enjoy (which is increasingly seen as a key metric).

    2) The price paid for websites of a similar scale (ideally in similarly-sized markets)... failing that you could get data for bigger or smaller websites that were sold and then scale the price paid up or down to match.

    That's probably the best starting point for a best guess - but even with all of that in mind it's still a guess.

    Bear in mind too that even the best market valuation can often be proven wrong... There are cases where companies get sold for less than valued because, perhaps, they timed their sale wrong, or for much more than valued because there's a buyer with deep pockets and a desire to acquire.

    Case in point (at the very highest end of the spectrum) would be Facebook's acquisition of Instagram and WhatsApp, or Apple's acquisition of Beats... all three involved sums well in excess of what the market would have deemed good value but the buyers had the money and were willing to spend it.


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    #11
    christiernan1
    Registered Users Posts: 7 ✭christiernan1


    thanks for the answers. I've googled since and so far can't really find a comparison. It's difficult to gauge where the price point would actually even be. I'm sure there'd be interest in buying an online news outlet, especially something that has more than 100,000 likes in Ireland alone. There's a number of them in Ireland now and they must all have a fairly decent price attached.

    An actual online news website is different to a newspaper or tv station though. They're a new entity really.

    I'm surprised no one could even hazzard a guestimate?


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    #12
    Atlantic Dawn
    Registered Users Posts: 81,406 ✭✭✭✭Atlantic Dawn
    M


    You normally set a purchase price for a typical business of 10-15 times its annual profit. The Journal has some deals with Daft and a couple of other organisations to sponsor stories, you would think at this stage it has hit the peak audience mass for Ireland that's there, possibly an addition of 10% per year at best but it is where it is. A value, who knows really, someone could buy it and basically spamerise the whole site with ads and subsriber only content and the site could fall in to obscurity. If it was me I would put a value of €3 per daily user.


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    #13
    Gloomtastic!
    Registered Users Posts: 8,348 ✭✭✭Gloomtastic!


    As a matter of interest, did you finish your homework? :rolleyes:

    http://touch.boards.ie/thread/2057414643/1/#post95107403


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    #14
    expectationlost
    Registered Users Posts: 11,770 ✭✭✭✭expectationlost


    depends on the property market


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    #15
    christiernan1
    Registered Users Posts: 7 ✭christiernan1


    Atlantic Dawn, that's a good breakdown. So essentially, how many readers they have a year x €3? Who would do a trade buyout on this, no one in Ireland surely?

    The other option, of course, is to sell equity. But again it goes on a valuation and they must vary.

    An online newspaper with a readership of say; 500,000 readers a month, it must be worth quite a lot of month considering advertisers would do anything to place their product in front of those people.

    Anyone any other thoughts on price or worth etc?


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    #16
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    christiernan1 wrote: »
    Atlantic Dawn, that's a good breakdown. So essentially, how many readers they have a year x €3? Who would do a trade buyout on this, no one in Ireland surely?

    The other option, of course, is to sell equity. But again it goes on a valuation and they must vary.

    An online newspaper with a readership of say; 500,000 readers a month, it must be worth quite a lot of month considering advertisers would do anything to place their product in front of those people.

    Anyone any other thoughts on price or worth etc?

    Global advertising market, they all compeat with Google, Facebook and Twitter etc to sell irish advertising.

    You could try to get a price for advertising online, sales person will tell the kind of audience you'd expect to get and for how much.

    Hype stat gives a suggested figure http://thejournal.ie.hypestat.com


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    #17
    IRE60
    Registered Users Posts: 1,880 ✭✭✭IRE60


    Its worth what someone is prepared to pay for it. You could not base your conclusions on 'traffic' - you have to know income and expenditure. A facebook 'like' is a sincere as a kiss from a whore, so thats not in the mix.

    Its a revenue/cost issue and without them its a complete shot in the dark.


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    #18
    flogen
    Moderators, Society & Culture Moderators Posts: 10,243 Mod ✭✭✭✭flogen


    Why do you keep asking people here to hazard a guess at a price when you're not willing or able to yourself? I assume you're not planning to use the guesstimates of some people on a forum as research for a college piece...


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    #19
    Murph_D
    Registered Users Posts: 10,427 ✭✭✭✭Murph_D


    Well yes, s/he is. Will probably then link to the post in the "bibliography". That's the entrepreneurial way - education is all about getting your money's worth, after all. :D


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    #20
    arthur daly
    Registered Users Posts: 477 ✭✭arthur daly


    It more than likely makes it's money from advertising,letting xxxxxxx put their banner up orsponsor article etc


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