CBS inflates the bubble with Dotspotter

by Mathew on October 11, 2007 · 4 comments

Dotspotter. Ever heard of it? Me neither — and I make it my business to keep track of as many Web 2.0-type new media sites as I can. Unheard of or not, the site has reportedly been acquired by CBS for $10-million (PaidContent has apparently confirmed this as well). How long has the site been around? Less than a year.

So, Dotspotter — which appears to be a kind of Digg for celebrity stories, with a user interface and site design that seems to have been designed by colour-blind gerbils — is worth $1-million for every month it has been alive. By that measure, a site like TMZ.com or PerezHilton (or Gabe Rivera’s WeSmirch.com) should be worth about $100-million — which, of course, would be insane (no offense, Gabe). And what kind of name is Dotspotter anyway?

According to the PaidContent piece, a source said the acquisition price wasn’t so much for the actual site but for the team, which includes a former Yahoo vice-president named Anthony Soohoo. So all of a sudden a crap idea is worth $10-million just because some Yahoo VP was involved? That’s genius. Maybe there’s hope for Guy Kawasaki’s Truemors.com after all.

Update:

My friend Om Malik says that (unlike me) he has heard of Dotspotter, and that they have an awesome development team. He also says his sources tell him the price was much less than $10-million. And if Om says it, I know it must be true :-)

  • John

    That’s all well and good.. but I prefer FlyLip.com – got the same celeb info but more interactive. Suppose they needed to shop around more befor the made a purchase. For those who don’t know.. http://www.FlyLip.com

  • http://www.enotes.com Alex

    Seems unrealistic that they would pay that much for what looks like a fairly simple blog with some web 2.0 features bolted on. Perhaps it’s 10% cash, the rest on earnout?

  • http://stuart.blogware.com Stuart MacDonald

    1997, ‘thewie. I swear to God…

  • Joe

    Heh. Truemors might not be the “Worst Website Ever”. :-))

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