6apart has just clinched another deal sez the St.Stephens fellow !
The Question in Play is wither 6Apart will go IPO or sell out ?
IMHO, Anil & Mena will not sell Out- they will go IPO. As per SERP thye have approx 14M Subscribers and add this with figure 9,560,000 from *.livejournal.com.
A total of approx 21M subcribers each with the lowest min of $8/- per month make this quite a huge revenue income. Why would they want to sell out like myspaces.com etc ?? This is constant revenue churn. From an M&A view point --critical mass stage has occured ( no wonder they are getting addional funds-$12M). However, from a aqquistion model this may not peter out well. 6Apart opening price will easily go for approx $216M !! (maths is simple) I dont think that any of the big 3 (MSFT,YHOO, GOOG) want a bloging platform at all. So who has that type of Mulla to shell out eh ?? nobody !!
So this leaves us with the question. How will net value be created ?? I think IPO is the route that will forumulate itself within 24 monthMs from now. (i.e after approx spend value of $0.5 per month ) !!
Like IDD report : Meanwhile, the valuations for online content companies remain strong in M&A deals and are comparable to, if not more favorable than, those in an IPO exit, notes Steve Bird, general partner at Focus Ventures, a Palo Alto-based venture capital shop. "It's not such a bad deal," he says of the M&A activity. "If you get a price that is as high or higher than the IPO, and you get cashed out immediately, that has a big impact on our rate of return."
Update : Rodrigo crunches the numbers , he pulls a number out of hat for the exit - $350M !!