Comments on: And then IBM http://www.redmonk.com/jgovernor/2007/05/17/and-then-ibm/ An industry analyst blog looking at software ecosystems and convergence Sat, 22 Nov 2008 16:27:16 +0000 http://wordpress.org/?v=2.6.3 By: Frank Hecker http://www.redmonk.com/jgovernor/2007/05/17/and-then-ibm/#comment-82972 Frank Hecker Fri, 18 May 2007 11:35:01 +0000 http://www.redmonk.com/jgovernor/2007/05/17/and-then-ibm/#comment-82972 Again, I can't speak to Last.fm, but eMusic's subscriber growth has been good but not YouTube-like explosive, and that sets a limit on its future earnings and hence valuation. As for being number two to the iTunes Store, s I said the general perception seems to be that that position is somewhat in doubt as Amazon enters the market. Again, I can’t speak to Last.fm, but eMusic’s subscriber growth has been good but not YouTube-like explosive, and that sets a limit on its future earnings and hence valuation. As for being number two to the iTunes Store, s I said the general perception seems to be that that position is somewhat in doubt as Amazon enters the market.

]]> By: jgovernor http://www.redmonk.com/jgovernor/2007/05/17/and-then-ibm/#comment-82903 jgovernor Fri, 18 May 2007 09:26:43 +0000 http://www.redmonk.com/jgovernor/2007/05/17/and-then-ibm/#comment-82903 the valuation rumours in London about Last.FM are pretty absurd. i have seen 500m sterling mentioned, and that's a firm without revenues, and i figured eMusic must be worth a lot as number two to iTunes. the valuation rumours in London about Last.FM are pretty absurd. i have seen 500m sterling mentioned, and that’s a firm without revenues, and i figured eMusic must be worth a lot as number two to iTunes.

]]> By: Frank Hecker http://www.redmonk.com/jgovernor/2007/05/17/and-then-ibm/#comment-82579 Frank Hecker Thu, 17 May 2007 22:54:01 +0000 http://www.redmonk.com/jgovernor/2007/05/17/and-then-ibm/#comment-82579 $2 billion for eMusic and Last.fm? I don't know about Last.fm, but IIRC Hypebot was mentioning an asking price for eMusic of about $100M. eMusic has approx. 300K subscribers, and average revenue per subscriber per month is approx. $15, so eMusic's annual revenue is on the order of $50M, and the rumored asking price is about 2x revenues. eMusic is perceived as being threatened by Amazon, and Last.fm is presumably perceived as threatened by proposed increases in net radio royalties. I suspect that IBM, Google, or whomever could pick up both eMusic and Last.fm for considerably less than $2 billion. $2 billion for eMusic and Last.fm? I don’t know about Last.fm, but IIRC Hypebot was mentioning an asking price for eMusic of about $100M. eMusic has approx. 300K subscribers, and average revenue per subscriber per month is approx. $15, so eMusic’s annual revenue is on the order of $50M, and the rumored asking price is about 2x revenues.

eMusic is perceived as being threatened by Amazon, and Last.fm is presumably perceived as threatened by proposed increases in net radio royalties. I suspect that IBM, Google, or whomever could pick up both eMusic and Last.fm for considerably less than $2 billion.

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