I am delighted to call bullshit on this: Vice Media co-founder Shane Smith’s claim, to Bloomberg TV, that his company could soon “have a market value equaling” Twitter.
The numbers thus far are impressive, if they are to be believed: according to an unnamed company insider, Vice’s 2012 revenue was $175 million. (As a mark of comparison, Gawker Media takes in about fifteen to twenty million dollars a year.) A recent investment from Rupert Murdoch’s 21st Century Fox valued the company at $1.4 billion, after Fox bought a 5 percent stake for $70 million. Smith now tells Bloomberg that he projects 2014 revenue will reach $500 million.With the recent launch of Vice News, the company plans to “double revenue to $1 billion by 2016 and may pursue an initial public offering.” Smith shares that profit margins are targeted “to widen to 50 percent of sales from 34 percent now,” per Bloomberg.
$500 million in revenue seems hard to fathom, though Felix Gillette at Businessweek sees a lot of growth possibility for Vice in online video ads, where it has succeeded in ways old media competitors haven’t. As Gillette notes, “it’s Vice’s stepped-up investment in original Web video that will ultimately determine whether …read more
Via: Melville House Books