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.