Did BuzzFeed Build $850M Valuation on Cat Videos?

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Aug. 12 (Bloomberg) -- Brian Wieser, senior research analyst at Pivotal Research, discusses the growth of advertising across television and digital media, BuzzFeed’s $850 million valuation and the future of the advertising industry. He speaks on “Bloomberg Surveillance.”

Media going to figure it out and actually go digital?

There is a lot of digital going on.

An important point and may be a quibble on the numbers, i would suggest that the second quarter national tv advertising grew about 2% versus 3% the prior quarter.

If you compare that to all advertising, all advertising grew about 1%. these are not particularly robust numbers.

Not for anybody.

Tv is still growing faster than the rest of media.

Digital media is taking share from other digital media and from print.

Is this a racing the bottom?

For a lot of them, yes.

It is a choice between bad and worse.

You can sell inventory cheap or cheaper.

Is but feed -- buzz feed worth $850 million?

[laughter] that's a good point.

It is hard to say that the company itself is worth 800 $50 million after seeing their financials.

It is a remarkable amount of money.

Triple digits in revenue.

$100 million in revenue.

Sales are growing at double-digit rates.

Can i step in because i am so hip?

Lol, wtf, omg.

You've got them all right.

[laughter] scroll down.

Is cap video the solution -- ca t video the solution to funding?

Is this the solution to fund editorial content?

Scroll down.

"apocalypse meow." this is a classic buzzfeed item, 13 movies that would be better if they start cats.

-- starred cats.

The telegraph in london is not doing this.

Everybody has a different model.

There is a lot of opportunity for journalism to be funded by very viral-based media.

"huffington post" did this a lot to rid this is a minority of journalism out there.

Is it the future?

You mean that are doing this?

Buzzfeed comes up with story algorithms.

It is not a large share of journalism or media consumption.

Let's rename a lot of movies with cat titles.

As it generate enough eyeballs?

The business is doing very well on the cat videos.

What is the point?

You create a perception of disruption.

So that some will buy the company for more than it is worth.

You have been a genius on facebook.

Thank you.

In this terrific correction, facebook has moved from 75 to 73 and change.

Resiliency personified.

Who was buying facebook shares?

Everybody owns it.

There is still more room to get into it.

What can buzzfeed learn from facebook?

Get bigger.

Much bigger.

They use facebook as a tactic well.

You look at yo.

They go after you, yo.

Facebook is 200 times bigger.

Buzzfeed is not a material consideration in the grand scheme of things.

Ought they to be overly reliant on social media?

-- are they vulbnerable to be overly reliant on social media?

That is a risk, yes.

Where is this in five years?

I still love getting my morning papers.

The post will be there, so long as rupert murdoch wants to to be.

The wall street journal has legs.

The rest of the newspaper population.

You might become a weekly newspaper.

There is room for -- there is room for one best in class.

Is buzzfeed the best in class on cat videos?

[laughter] i'm fascinated by this question.

Advertising in all this new media.

If you have a 24-year-old kid who wants to get into advertising because they watched "mad men." which part of that mad world do they fit into?

Rocks marketing technology -- marketing technology, adobe sales force, oracle.

The agencies, frankly.

They still have a place?

They survive the apocalypse.

The market technology guys, the reason to focus on them, it is a multi-trillion dollar opportunity.

Oracle has been very aggressive in investing.

Salesforce.com is the same thing.

Cat videos have cross-border

This text has been automatically generated. It may not be 100% accurate.


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