Crypto Media Valuation Premium

Shaan Puri and Sam Parr discuss the valuation dynamics of crypto media companies, particularly focusing on how they command premium valuations compared to traditional media companies due to their strategic value to larger tech companies.

• Crypto Media Valuations:

  • Traditional media company multiples don't apply to crypto media
  • Crypto companies get ~2.5x premium over regular media valuations
  • Example: Coinmarketcap sold to Binance for $500M

• Strategic Value Drivers:

  • Financial news is the most valuable news segment per user
  • Crypto news sites are becoming the "Bloomberg/Wall Street Journal of crypto"
  • Large crypto exchanges (worth $80-100B) want media arms for user acquisition

• Exit Strategy Advice:

  • Don't sell to traditional media companies
  • Target tech companies as acquirers
  • Take stock deals from tech companies over cash
  • Example: "I would rather own $50M of Coinbase stock than New York Times stock"

• Market Dynamics:

  • High appetite for crypto content
  • Users constantly engaged due to market volatility
  • Crypto media sites can achieve significant traffic
  • Some crypto sites get more traffic than traditional financial news outlets

• Business Model:

  • Revenue streams include email subscriptions, podcasts, conferences
  • Can be built as traditional small business with steady growth
  • Current valuations suggest ~4-5x revenue multiples for exits