MyBlogLog sold for $10m
Yahoo have announced that they will be aquiring MyBlogLog for a (rumoured) $10m. Wow! Meteoric or what? The YouTube deal fed the big dreams, MyBlogLog is feeding the small ones. It was founded in March, but only really got moving in October when TechCrunch profiled them. Since then they’ve exploded in growth. An incredibly simple idea that in hindsight (always is) was obvious. Let people reading your blog expose themselves to others, then leverage that into a social network. They played on one of the core motivations of blogging: self-promotion.
So is it worth $10m? At first I thought it was crazy, but when you think about it this was one of those land grab deals. Another service will really struggle to overrun MyBlogLog because it already has most of the big blogs and is gaining serious traction. For Yahoo to come out with its own product (2-3 coders could write MyBlogLog in a couple of months) would have been technical possible, but they would not have gained traction against an existing service, let alone the Yahoo brand probably working against them.
Yahoo buying MyBlogLog has nothing to do with technology and everything to do with betting on a winner — if they keep going the way they are now, the product could well unify the entire blogosphere. The value then would be 2x-20x what they are now. Yahoo are making a smart bet and showing they have their ear to the ground.
Congratulations to Scott, Eric and Todd — your hourly rate for this project was $1543.209. (3 people averaging 60 hours per week for 9 months)