BabyCenter LLC chairman Tina Sharkey said today that the online media company is worth between $500 million and $1 billion. Speaking during the keynote interview at the
Momentum Conference in Silicon Valley, Sharkey (picture in the middle of the photo) said she fields three calls per week from parties interested in purchasing BabyCenter from Johnson & Johnson (NYSE:
JNJ).
During the question and answer period, I asked
AOL-veteran Sharkey what she tells the interested parties. She responded that the property is not for sale but she meets with the prospective purchasers in "the spirit of partnership" and to build relationships. Discussions can lead to a partnership, an acquisition for BabyCenter or some other business development deal.
Despite her denial, it could make sense for Johnson & Johnson to divest itself of the online media parenting company it
purchased out of bankruptcy in March 2001 for just $10 million in cash. By design, J&J only accounts for about 10% of BabyCenter's ad revenue. While the online property serves as a global media channel for the pharmaceutical giant, it could maintain that relationship following a divestiture. While J&J has no pressing need for cash, BabyCenter's fit into the company's overall portfolio is questionable.
During her interview today, Sharkey gushed about J&J CEO Bill Weldon's recent five-hour visit to the BabyCenter headquarters in San Francisco. But it seems possible that a private equity firm such as Elevation Partners could be interested in handing J&J a huge profit while leading BabyCenter's expansion into international and post-pregnancy markets. -
Joshua JaffeFor more on the Momentum Conference, see:
Under the Radar BlogWired BlogEtay Gafni
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