There’s an online video boom going on, and big-name platforms are looking to cash out. The latest property that has reportedly joined the market is CollegeHumor, which, according to Fortune, is looking to sell for a nine-digit sum.
InterActiveCorp (IAC), which owns a majority stake in the humor website, is reportedly searching for a buyer who is willing to pay at least $100 million. That’s a pretty hefty sum for a company best known for its silly videos, but CollegeHumor does have a fair bit of scale: It has more than eight million subscribers and 3.1 billion views on YouTube, generates millions more views on its own website, and has expanded its network through mergers with Cracked and Electus.
IAC (which also owns prominent online video site Vimeo) is following the lead of Funny or Die and The Onion, both of which are also looking to cash in on the growing interest in online comedy platforms. Should IAC sell its share of CollegeHumor at the value it wants, it would turn a big profit; the media company purchased its 51% stake in CollegeHumor in 2006 for a reported price of $20 million.
In 2014, investors have greatly increased the amount of money they have spent on online video properties like Maker Studios, Fullscreen, and Stylehaul. As more companies close nine-digit sales, those that remain on the market are theoretically able to fetch higher prices due to increased demand. That will help CollegeHumor, though there are still an abundance of choices for corporations looking to invest in web comedy.