Bubble 2.0: Glam turns down $1.3B

Matt Marshall over at VentureBeat is reporting that Glam Media — an advertising/content network focused on sites that appeal primarily to women — has turned down a $1.3-billion acquisition offer from an unnamed party. Like Caroline McCarthy at Webware, I assume that this offer likely came from an “old media” company such as CBS or possibly a large advertising player (Ash has some theories too). But seriously, $1.3-billion? And Duncan Riley at Inquisitr says this isn’t even that great an offer when you consider that Glam has gotten four rounds of financing totaling about $115-million.

There’s no question that the Glam Media story is an appealing one: the company says that it has more than 65 million unique visitors across its network — although as Mike Arrington has pointed out in the past, that figure is an aggregation of all the visitors who come to any of Glam’s partner sites. He also noted in that post that Glam owns a bunch of pure SEO plays such as free-beauty-tips.com and so on. In a previous VentureBeat story, one critic called Glam “Boo 2.0,” referring to the Bubble 1.0 shopping site — and Matt Marshall noted that half of Glam’s total pageviews came from a single site (MyYearbook.com).

Still, the network has grown at a fairly impressive rate, and counts some prominent sites like E Online as partners — and has just launched a fairly sophisticated video content/advertising system as well. According to PaidContent, the company gets a whopping $50 CPM on some of its video ads. But to turn down a $1.3-billion takeover offer? As Erick Schonfeld notes at TechCrunch, that’s almost 9 times estimated revenues and 33 times estimated profit. Either Glam’s financial backers have gotten greedy, or someone has been drinking an awful lot of Web 2.0 Kool-Aid.

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