Metacafe Traffic Dips, Acquisition May Have Stalled
Written by on December 11th, 2006 in Ajax News.
The rumors around a possible Metacafe acquisition continue to swirl around silicon valley, with Yahoo being considered the most likely acquiror, at a $300 millionish acquisition price. Another potential acquiror is a rumored industry consortium looking to buy its way into the space. We’ve gotten confirmation from a number of potential acquirors that the company hired Lehman Brothers to shop them around, and were asking for $200-$300 million.
But those discussions may have stalled due to the recent release of November Comscore traffic numbers. The number of monthly unique visitors to Metacafe continues to decline from a high of 4.2 million in September, to just 3.1 million in November, a drop of approximately 25%. Total page views are relatively flat over this period, going from 97 million in September to 101 million in November.
Acquirors are also expressing concern over the relatively large percentage of “adult content” hosted by Metacafe - a profitable but difficult business to be in.
Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.
Source: TechCrunch
Original Article: http://feeds.feedburner.com/~r/Techcrunch/~3/59796854/