WebProNews

Bambi Francisco over at MarketWatch is reporting that the funding Topix received from the newspaper companies was less than $5 million.

However, Bambi goes on to say this:

"Separately, the three newspapers bought 75 percent of the company for a market valuation below $100 million, but north of what venture capitalists valued Friendster, according to someone close to the deal. Friendster was a fast-growing social-networking start-up that received a market valuation of $50-plus million in the fall of 2003."

Does that mean the three founders received a $5 million investment and seperately were given another $50 million for the 75% stake?

I doubt it.... but if it is true then the internet bubble is back!

Topix.net is a company with only 9 employees including the unpaid founders, no revenue except for a few dollars in the hat from Google AdSense and not significant traffic. $5 million is a great deal for them ... but $50 million is 1999 all over again.

If you have the real story please let me know ...

I've reposted this at our search engine forum WebProWorld.

Rich Ord is the CEO of iEntry, Inc. which publishes over 200 websites and email newsletters. Rich also publishes his blog WebProBlog which focuses on internet business and marketing trends.