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 ...

__________________
Rich Ord
CEO, iEntry, Inc.
http://www.ientry.com