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Updated: Bebo’s Revenue Numbers: Not So Big; AOL Paid 160 Times EBITDA: Report

By Rafat Ali - Thu 13 Mar 2008 09:28 AM PST

image image 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.

Updated: comScore (NSDQ: SCOR) also reports Bebo’s increase in total unique visitors in 2008 compared to 2007:

-- In January 2008, Bebo had 22.4 million unique visitors worldwide with visitors averaging more than 3 hours and 30 minutes on the site during the month.
-- In February 2008, Bebo had 4.8 million unique U.S. visitors with visitors averaging 1 hour and 40 minutes on the site during the month.
-- In January 2008, 60 percent of Bebo’s traffic came from Europe, followed by North America with 22 percent, and Asia-Pacific with 16 percent.
-- In January 2008, there were 11.4 million unique visitors from the United Kingdom to Bebo, representing the largest proportion of the site’s worldwide traffic.

Posted in: Companies, Time Warner, AOL, VC+M&A, Mergers & Acquisitions

Tags: bebo


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