Tuesday, October 24, 2006

RMX Valuation - Part II

Just thought I'd bubble up some interesting discussion from the comments of my previous post. Firstly, we have John Demayo chiming in with:

"Figure they are doing around 10x the volume outside of RMX direct. Call it 650m impressions per day, or 230bn per year."

A lot higher then I would have guessed.

Given John's current experience in this field, I was inclined to agree that my estimate may have been a bit rich, but then Pat McCarthy, who is one of the brains behind Right Media, adds some further weight to the argument that RMX is actually transparent and shares with us the following:

RMX Direct is just our newest publisher product, which is actually up to 100 million impressions a day now.

But, the full Right Media Exchange is much larger in volume. Over 2 billion impressions per day.

Which then leads John Krystynak to revise my estimate upwards, but taking down the CPM rate:

My guess would be that .75CPM is too generous, esp with the 2B imp number...

If they now do 2.1B / day, I'd guess average of 30cent CPM. Say they get 4cents so perhaps $80k /day take home...

$24 M /year. More like a 9X revenue valuation.

Otherwise, why would they take VC money at all!?

It's so little cash for Yahoo, it's just gotta be an interesting experiment from their point of view. I.e. "What to do with this RMS (sic) Network thing? - Should we throw some stuff their way?"

In other words, the Yahoo investment terms don't necessarily tell you a lot...


Anonymous john demayo said...

Looks like I wiffed on this one. A topic I'll continue to look into. Interesting that this offering of theirs is kinda of ad serving + price-based scheduling tech + network style outsourced sales, a combo of services that used to be priced and offered seperatly.

10:27 AM  

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