---
title: "Startup Review says craigslist is worth $2.4B"
date: 2006-08-01
author: "Richard MacManus"
categories:
  - name: "ReadWriteWeb"
    url: "/category/readwriteweb.md"
tags:
  - name: "2006"
    url: "/tag/2006.md"
---

# Startup Review says craigslist is worth $2.4B

Nisan Gabbay of Silicon Valley VC firm Sierra Ventures has started up an interesting new blog called [Startup Review](https://web.archive.org/web/20100722014704/http://www.startup-review.com/), which aims to profile Web startups from a business angle. Here’s how he put it in an email to me:

> “Startup Review will feature weekly, in-depth case studies on successful Internet start-ups. The companies profiled will have achieved either: a) significant exits, b) large revenue, and/or c) strong Internet brands.”

His first profile is [of craigslist](https://web.archive.org/web/20100722014704/http://www.startup-review.com/blog/craigslist-case-study.php), which he claims could be worth **around $2.4 billion** – if Craig Newmark wanted to sell (there are no indications he does). Nisan notes:

> “Assuming they could make $200M in revenue at a 40% net margin, and applying an Ebay-type EBITDA multiple, that would place the value of the company at ~$2.4B. I have no doubt that if Craigslist were to sell, it could command more than a $1B purchase price as is today, and probably significantly more (Note: Craig is a better man than I!)
> 
> eBay would be the most logical acquirer, given that they already own a 25% stake through a rather dubious stock sale by a former trusted employee of Craig’s.”

There’s been a bit of talk about Facebook.com and YouTube asking for over a billion to be acquired, so by that measuring stick craigslist would certainly be at that level of value too.

*Originally published on ReadWriteWeb ([archived copy](https://web.archive.org/web/20020204040018/http://www.readwriteweb.com/archives/startup_review.php))*