CBS inflates the bubble with Dotspotter

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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 :-)

Comments (4)

  1. John wrote::

    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

    Thursday, October 11, 2007 at 9:58 am #
  2. Alex wrote::

    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?

    Thursday, October 11, 2007 at 10:39 am #
  3. 1997, ‘thewie. I swear to God…

    Thursday, October 11, 2007 at 11:34 am #
  4. Joe wrote::

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

    Thursday, October 11, 2007 at 1:29 pm #