Business Week just featured and article about the concept of media company's buying up websites and editorial content. Robert Pittman and their private equity firm have invested in an eNewsletter/website called www.dailycandy.com. There are specific on-line editions in 10 cities from New York, LA, Miami and next is Atlanta.
This eNewsletter and website allow for new trends in fashion, restaurants, entertainment to be marketed to a very valued target audience, mostly women 18-34 with income and spending power.
Business weeks says that this webzine may be worth as much as $100 million dollars.
The trick to the valuation is to have a very professional staff and approach including a professional editorial team and advertising sales team. The rate card for advertising in Daily Candy goes from a few thousand dollars per ad to the thirty thousand plus per city edition. DailyCandy claims more than one million subscribers.