Home Startup Review says craigslist is worth $2.4B

Startup Review says craigslist is worth $2.4B

Nisan Gabbay of Silicon Valley VC firm Sierra Ventures has started up an interesting
new blog called Startup Review, which aims
to profile Web startups from a business angle. Here’s how he put it in an email to

“Startup Review will feature weekly, in-depth case studies on successful Internet
start-ups. The companies profiled will have achieved either: a) significant exits, b)
large revenue, and/or c) strong Internet brands.”

His first profile is of craigslist,
which he claims could be worth around $2.4 billion – if Craig Newmark wanted to
sell (there are no indications he does). Nisan notes:

“Assuming they could make $200M in revenue at a 40% net margin, and applying an
Ebay-type EBITDA multiple, that would place the value of the company at ~$2.4B. I have no
doubt that if Craigslist were to sell, it could command more than a $1B purchase price as
is today, and probably significantly more (Note: Craig is a better man than I!)

eBay would be the most logical acquirer, given that they already own
a 25% stake through a rather dubious stock sale by a former trusted employee of

There’s been a bit of talk about Facebook.com and YouTube asking for over a billion to
be acquired, so by that measuring stick craigslist would certainly be at that level of value too.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.