CBS forks out $5 million big ones for Wallstrip according to reports from jossip. Wallstrip is a humorous take on Wall Street and sustained an original investment of 500K from Union Square Ventures (Fred Wilson). One has to wonder as Techcrunch poignantly mentions why would CBS pay so much dough for a company that makes absolutely zip in revenue. Do you think CBS is getting caught up in the online media frenzy of M&As currently happening in the web 2.0 space?
On the other hand it may be too early to throw CBS under the bus. They obviously have a road map (one would hope) for this web property. At least it sets a precedent on valuation for entrepreneurs like us. A zero revenue generating web property targeting a very niche market can go for 5 Mill. Sounds good to me.
