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Email Newsletter Daily Candy Gobbled up by Comcast for $125 Million

The email newsletter Daily Candy, now going on its eighth year, got a sweet deal this week. Comcast is buying the company for $125 million. Rumors were that Comcast would pay far less – around $75 million and it’s many times over their revenue.

The pithy newsletters focus on what’s hip and fashionable – marketing products to young women – and drawing national advertisers. Last year they expanded to include a kid’s edition aimed at well keeled moms. In 2006 the newsletters totaled around 2.5 million subscribers.

Daily Candy was launched in 2000 by Dany Levy with money from savings ($50,000) and investment capital ($250,000 from family and friends). In 2003, they got a further investment from Pilot Group for $3.5 million and a majority share.

Last year PaidContent questioned whether the company would stick around when the tastes of the trendy can be so fickle. I think this shows that eight years later the concept has aged well.

Note: Even I couldn’t believe it sold for $125 million – and consequently there was a typo in the original post. I previously used $1.25 million figure. Thanks for the catch.

  • http://www.webbythoughts.com/ Mike

    That should be $125 million instead of $1.25 million.

    That is just a crazy amount of money but it is $50 per current subscriber. Good work by the Daily Candy people.

    Mike’s last blog post..Reviews of Online Advertising Options For Bloggers

  • http://www.greatpriceshere.com Nicole Price

    I noticed the typo and was a bit puzzled but it eventually made sense. Just shows that one does not really know what will take off and what will bomb in the Internet business. Chance seems to play a major role in all these matters!

    Nicole Price’s last blog post..Discount DVDs

  • http://www.seopositive.com/ SEO

    Nicole, chance is a huge thig on the internet. Some really innovative ideas do not take off, then some other things will be spread all over the net.

  • http://www.jordankasteler.com/utah-seo-pro-blog/ Utah SEO Pro

    I wonder how much of a kicker his family and friends will get for their initial investment?

    Utah SEO Pro’s last blog post..Mobile SEO – SMX Local Mobile 2008 Presentation

  • http://www.fiftystudio.com/news/ Fifty Studio

    Hmmmm. Looks like we’re going to see a few newsletter startups in the future.

    Fifty Studio’s last blog post..Win Batman Dark Knight tickets

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  • http://mp3leben.com Tiffany

    1.25 million is fantastic amount, moreover 125 million…No wonder you get doubt with the amount :)

  • http://jeflin.net/ jeflin

    I just heard about Daily Candy from your blog today, hopped over to the site and after some exploring… can’t figure out its $125 million value.

    I guess value is in the eyes of the beholder and it remains to be seen if Comcast can recoup their investment.

    jeflin’s last blog post..Overhead Supply Can Trap Your Money

  • http://factualsatisfaction.freehostia.com/cell.html brando the Great

    This company is worthless I wouldn’t invest.