The Deal that Launched a Thousand Blog Networks

Among other things, the AOL acquisition of Weblogs, Inc., has apparently convinced some people that AOL has set a stake in the ground for how Weblogs are to be valued. While I’m entertained by the analysis, one anomalous purchase does not make a market, however much some bloggers might wish it were so:

In acquiring Weblogs Inc., AOL has now provided us with some numbers traditional media are willing to pay for a blog. Looking at the numbers above, one can try to guess at the value of a link from an external site…

At the different rumored price points from AOL, [the per incoming link value of a blog] looks as follows:

Link $25 million value 30 million value 40 million value
1 $564.64 $677.57 $903.42