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Perez Hilton's blog worth $20 million or $32 million or $564?

Perez Hilton 
On May 19th Gawker reported that Avid Life Media, owners of sities like Ashley Madison and HotorNot.com, teamed with Zack Taylor in a bid to buy PerezHilton.com for $20 million. No word as of this writing if Perez Hilton took the offer, but according to The Wall Street Journal, Perez Hilton's blog was worth $32 million in 2009.

First, just how much a blog is worth is a controversial subject because the methods used to estimate it are all over the place. While Perez Hilton was offered $20 million for PerezHilton.com, it was worth $32 million in 2009 and $48 million in 2008.

But if you use Technorati.com's blog value app, Zennie62.com is worth more than Perez Hilton.com. Zennie62 is http://zennie2005.blogspot.com, which is valued at just over $10,000; Perez Hilton's blog clocks in at $564, and that's it.

Obviously the Technorati.com blog value app has some problems. It's based on estimated link value, and not on any assumption or information on ad value. Zennie62.com as of this writing has no major add because I have not shopped it around for sponsors. With that, it's cool to know it's worth five figures, but it's throwing off fairly good monthly revenue from Google Adsense via YouTube alone. Also, our overall stats are more impressive than a $10,000 value would imply.  I'd add a zero for $100,000.

(And that's just one blog; there are 102 blogs in the Zennie62.com network.)

As Douglas A. McIntyre writes at 24/7 Wall St, the blog that produced the Perez Hilton estimate of $32 million, a blog is worth what a person will purchase it for. But even with that fact, what Perez Hilton's blog is valued at has dropped a almost $30 million between 2008 and 2010. That should give Perez Hilton pause, but not so much.

Consider that today there's an estimated 126 million blogs and that in 2008 there were 112 million blogs; so between 2008 and 2009, a gigantic 14 million more blogs were added to the blogsphere. What that means is less natural market share for all blogs, PerezHilton.com included. That should translate to less value. There are more blogs competing for add dollars than ever before.

As I've said before, the best answer is for media companies to buy large chucks blogs. Apparently Avid Life Media is doing just that.
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