In other blogging news, the Huffington Post has raised another $5 million (bringing the total raised to $10 million), from existing investors Softbank Capital, Greycroft Partners, and former AOL COO Bob Pittman. That should help the HuffPost (ranked the No. 5 most-linked-to-blog by Technorati) pay its 43 employees and expand even further. Rafat Ali has the details.
Anyone know where that puts the post-money valuation on the company now? Please send me an email or enlighten us in comments.
Update: Without knowing what percentage of the company has been sold, it is difficult to come up with a valuation. But as a point of comparison, family-networking site Geni got a $100-million valuation when it raised its second round of $10 million earlier this year. It is arguable that a media company like the Huffington Post would command a lower valuation than a pure Web company like Geni. Why does any of this matter? One rumor making the rounds both in Washington and blogging circles (so take this with a double-dose of salt) has it that as soon as next year’s elections are over, the Huffington Post is going to try to sell itself or (if the markets are willing) maybe even IPO.
Here’s the logic behind such speculation: As the election cycle heats up, the Huffington Post should see its traffic soar. Look for interviews with all the presidential candidates as they try to figure out new media, and look also for campaign and other advertising dollars to follow. What better time to try to cash out than right after the election-cycle peak?
Update 2: Former Wall Street Internet analyst Henry Blodget estimates that the HuffPost is worth $60 million.