So we reported on the return the investors got, but not on Bebo's actual revenue numbers. Kara digs in and reports on some of the real revenue numbers: Bebo's revenues for 2006 were only $7 million with $3 million in EBITDA...In 2007, the results are still small, with $20 million in revenues and $5 million in EBITDA. Based on these numbers, AOL (NYSE: TWX) paid a huge 42.5 times revenues and 160 times EBITDA.
Even looking at projected numbers (which of course may or may not materialize)--$50 million in revenue and $10 million in EBITDA in 2008; $117 million in revenue and $48 million in revenue in 2009 and $193 million in revenue and $92 million in EBITDA in 2010-- it is a very rich deal, for the founders and investors.
Kara says that the high asking price (around $1 billion) and smaller U.S. presence (big in UK and Europe) made others like News Corp (NYSE: NWS). MSFT and others pass on the deal. Allen and Co was hawking the firm.
By Rafat Ali