congratulations to dailycandy! my sister has been an exec there for a long time, so this is really exciting haha

congrats to you and your family then... must be a nice payday hopefully. ;-)

I'm shocked at the price, but good for them.

quick math: $25m in revenues, 2.5m subscribers, which makes it $50 annual revenue per subscriber.

So I am wondering is $50/year/user a high or low figure in web advertising? I am suspecting it's a high one because of the audience (hip, young and rich urban women)

Not sure I follow your math. Wouldn't that be $10 in annual revenue per subscriber ($10 * 2.5mil = $25mil)?

Very, very high

This really makes me wonder how valuations are calculated for newsletters. Anyone?

Same as websites - but you track number of people subscribed and the key metric is how many people open it. CPMs are a little higher for newsletters than for websites with the same number of readers I've found (as an advertiser, not a content producer).

so . . . we plan to move to DC next summer. Would my wife want to sign up for this now that it's been sold?