IP Democracy: Is "New Site" Worth $1 Billion?

The New York Times’ Brad Stone (the intrepid reporter who uncovered Fake Steve Jobs, btw) has this piece today about the joint venture between NBC-U and News Corp. to create an online video destination and syndication business and the amazing $100 million investment stake it raised from Providence Equity Partners.

Judging from the first paragraph in the article, Brad, like the rest of us, is obviously skeptical about the venture, called simply “New Site” because after six months it still has no name.

The joint venture between NBC Universal and the News Corporation to bring their television shows and movies onto the Internet still lacks a Web site. It still has no name. It also has yet to announce a clear mission that persuades the large number of skeptical observers that real-world rivals can cooperate online.

And yet..and yet..”New Site” has been able to raise a mound of money from a blue chip investor. The $100 million reflects a 10% stake in the venture, which means that “New Site” is worth $1 billion according to somebody’s calcuations. Todd Dagres, general partner at Spark Capital, is quoted in the article as calling the valuation “startingly rich,” particularly given that there isn’t likely to be a sell-out or IPO given the studio parentage.

Well, that’s probably an understatement, and this latest development only puts even more intense pressure on the joint venture to succeed.

Posted by Cynthia Brumfield on August 9, 2007 9:39 AM to IP Democracy