RESPONSE TO:- "Why Demand Media is Worth More Than the New York Times". Peter Kafka - All Things D
My response:
Peter,
Nice article. I understand Bruce’s response above, but imho it’s
reactionary and though in the moment may have merit, it is based on too
narrow a vision.
The latter ‘vision’ being the operative word…Richard has seen that traditional media isn’t necessarily broken, it is just going through a Star Trek style transporter and is still all in pieces mid journey. His model is based on the notion that all the pieces will still come back together on content and we are gradually seeing the evidence of that materialise.
DM have placed themselves at the forefront of that whilst all eyes are still on pure user-generated models and cheap self-serve advertising. DM are the biggest single contributor of content to You Tube for example.
If FB holds a valuation of 6.5bn which has evidently decreased from more than twice than that, then in a recession, my bets are on a more modest but tangible valuation slowly going upwards. DM’s assets may be of varying IP value, but they are genuinely all owned and paid for. The big social networks, only ‘own’ the inconvenience of their users migrating away, not the content itself.
I hope Richard hold’s on to his baby for a few years so his vision is truly born out. Personally I’d invest in whatever he does now or next!
Jan
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