Estimated Value: $400 million
Business: Thumbplay sells ringtones, wallpapers, games, and a few other goodies for cell phones.
Location: New York, NY
More Info: Thumbplay
CEO: Are Traasdahl
Investors: Bain Capital Ventures, SoftBank Capital, i-Hatch Ventures, Redwood Partners, New Enterprise Associates and Meritech
Analysis: Thumbplay raised $18 million in March, 2008, and we hear that it is doing about $100 million a year in sales.
Our primary concern: The ringtone market is flattening. Thumbplay is a subscription business, however, not a pure ecommerce company, and the business is somewhat diversified. More.
We don't have detailed margin information, but a conservative valuation multiple would be 2x - 3x and an optimistic one might be as high as 7x. We're applying a 4X multiple to our estimated 2008 revenue of $100 million, for a $400 million valuation.