As one of the most successful pure-play online publishers, Nick Denton’s business model for Gawker Media is worth close scrutiny. Ben McGrath’s piece in The New Yorker contains some interesting data about his financial results:
As it is, given the thin margins of online publishing, Denton’s cultural impact greatly exceeds his revenues, which are somewhere on the order of fifteen to twenty million dollars a year. His ownership stake in the company is around sixty to seventy per cent, and every so often he attempts to consolidate by buying back shares that he has given to current and former employees. The rate he offered earlier this year would have put the company’s value at only thirty million dollars, or a fraction of what most analysts have estimated.