72% 18-34 year olds
99.6% audience recall for 1 or more sponsor
56% of Revision3 viewers have purchased a product or service from a show sponsor
I think the price is interesting. Especially when you compare it to other exits, particularly Instagram. AFAIK Rev3 had a decent, proven business model and have been growing and expanding in different directions (distributing content from other content producers). We don't know exactly why Instagram was bought (defensive move, user/photo data) but when you compare the two the Instagram price seems ridiculous.
(I personally think buying Instagram was a smart move by Facebook and I understand the price it just seems crazy when you compare the exit of a company with a proven business model to that of a company with no business model and no plan for one).
> AFAIK Rev3 had a decent, proven business model
1. Diggnation was the flagship and highest rated show for much of rev3's life.
2. All of the founders were full-time employees of Digg when they were working on Rev3. In fact, at least one of them has publicly stated that Rev3 would not exist if it hadn't been for the digg salaries.
The thought of TRS or some of their other shows showing up on cable makes me super happy
Series A, 9/06 1
Greylock Partners - $1M
Series B, 6/07 2
Greylock Partners - $8M
Sadly, I'm part of the reason, since I enjoy Deadliest Catch.
(Or else not - it might be valuable to have Internet-only programs.)
OTOH, I do watch revisio3 shows from time to time and I can name many of their sponsors.
I know I followed Rev3 closely because I enjoyed old-school TechTV. I also know I'm not an Instagram user. Am I the minority, here? Just trying to understand what's at play here, and what it means for the future.
The way a company like Revision3 gets a big valuation is by having massive distribution AND a big hit that goes mainstream, much like what Draw with Me did for OMGPOP. Revision3 never had a crossover hit that the average Joe watched. They stayed niche, and $30m is maybe as much as they could get for that audience and distribution footprint.
Meanwhile Instagram had MASSIVE distribution, in the millions, AND was generating content at an epic clip. No one piece of Instagram content might be as "sticky" or engaging as a single piece of Revision3 content, but wouldn't you want to have all those photos instead of a bunch of shows watched by a small but fervent audience?
Yeah, only one was perceived as a threat to Facebook.
$10m raised over 3 rounds, $30m exit... probably not a great outcome for any of the investors.