BuzzFeed’s Valuation Is No Concern: Burbidge

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Aug. 12 (Bloomberg) -- Passion Capital Partner Eileen Burbidge discusses the $50 million investment and current valuation for BuzzFeed. She speaks with Anna Edwards on Bloomberg Television's “The Pulse.” (Source: Bloomberg)

Washington post" and "the l.a. times"? a number of reasons.

There were lots of rumors that disney was close to paying upwards of $1 billion last year.

Legitimately because of how much attention it gets from its audience.

It has 150 million unique visitors every month.

It does roughly about 120 million people in revenues.

What drives it is the demographic between 18-25-year-olds.

And how much time they are spending on the site.

You make a comparison to traditional media companies.

"the new york times" is valued at about half of that business.

In addition to being news or coverture content, people are valuing it like a technology company.

That seems to be the secret.

No matter what business you are in, if you get yourself a year as a technology business, you get those high valuations.

[laughter] it relies on social media networks to get in front of people, to get in front of people.

Facebook and others.

Is that a strength to the business model or a hindrance?

I think is a little bit of both -- it is a little bit of both.

A reliance on the platforms is a potential liability.

But they are doing better content leveraging those networks.

They have the technology, they have the know-how to make use of these channels more than anyone else and before anyone else even thinks of it.

Whether it is pictures driving more traffic than twitter or other syndication.

What is it that is so special about the technology behind this business that means they are so able to create content that is been clicked on and watched or read?

That seems to be the secret.

They actually used the data to inform the editorial process.

I think that is right.

It is similar to "moneyball." people took analytics into sports.

This is what they are doing with content and media.

They built all the technology from the ground up.

Things that render for them and show what they will look like on a mobile phone, they know what the content looks like on any number of devices.

They're constantly tracking what their users are looking at, reading, and they are dynamically restructuring.

They are able to take everything from the content all the way up to analytics and what they do with the content and make the most of it.

How significant is it that they create sponsored stories that brands like?

If you are looking for new revenue streams, is that significant?

I think it is very significant.

It is the attention economy.

People were getting tired of the traditional advertising format.

They didn't like the in-your-face, bold advertising taking away from the experience on the site.

Advertisers like to be blended in with the experience and have some kind of relevance to what people are reading about.

Buzzfeed has channels and advertisers are going to particular channels.

Some people criticize they are making advertisements look too much like articles.

But i don't think it is turning anyone away.


What about valuations?

Is this a technology business or in his business?

Even janet yellen was talking about concerns around tech fell you a. is it a concern to you?

It is not a concern to me personally.

Right after that statement -- tech valuations.

Is that a concern to you?

It is not a concern to me personally.

Right after that statement, tech fell you asians are 10 times more than revenue.

It does not seem -- tech valuations are 10 times more valuable than revenue.

It does not seem bad.

Thank you very much.

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