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CBS inflates the bubble with Dotspotter

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 :-)