Apparently the “overvaluation of the MCN” era is over and we’ve crashed back down to Earth a little bit. RTL Group, a European media conglomerate (Jesus, how many media conglomerates does Europe have?) who invested $6 million in StyleHaul back in 2013, has just added another $107 million to the pot to outright purchase the fashion-focused MCN. There are some additional components to the deal, such as their pledge to put another $20 million into the company, as well as performance bonuses, but overall, RTL Group scored on this deal.
All the numbers mean their valuation of the company is somewhere in the $151 millon range, according to people smarter than us. And yet, a lot of industry types were expecting it to sell for a lot less, apparently looking closer towards the $60 million range. So for some, this is a HUGE overvaluation. But for others (including NMR and our crystal ball), this is an undervaluation — even to StyleHaul insiders.
Re/code, who was one of the early breakers of the news stated: “Earlier this summer, when one of StyleHaul’s backers told me the company could fetch $200 million to $300 million, I didn’t bother to print that estimate, because I didn’t want to look like the kind of person who just typed what people told me.”
With Maker selling for $500 million to Disney and several other MCNs going for insanely inflated sums, StyleHaul seemed set up to follow suit. It’s one of the few MCNs that maintains a strong portfolio of creators with a capable track record of sustainability. Eventually the world will run out of “Shit _____ Says” videos, but there will always be style.
Stylehaul’s network is smaller than Maker or Fullscreen — a billion views a month compared to the others’ roughly six billion, so maybe the number makes sense now. But NMR believes in the future of a company, not just the present. Ultimately, Stephanie Horbaczewski, StyleHaul’s president, must be pretty pleased this deal is finally done though — considering speculation of the sale has been going on for months now.
Faux fur coats and Ferraris for everyone!