If YouTube went for $1.65B and is the main M&A comparable.

What about Joost?  Joost just raised $45M from 2 VCs, CBS and Viacom.  But at what valuation?

That’s a great question, the two founders of Joost carry a lot of street cred, and they have used their own funds to ramp up the valuation.  While Joost is a much-hyped project, a quick peak at the interface suggests that there might just be some substance beneath the flash, for sure.  Disclaimer: WatchMojo.com is one of the content providers on Joost, one of the few online-only ones, in fact.

Anyway, much like Google gave 10% to Kleiner Perkins and Sequoia each for $25M total ($12.5M each), I do not see either Sequoia or Index Ventures taking less than 10%.  I also don’t see CBS or Viacom taking anywhere near that.  So say in all Joost gave up 25% (10+10+2.5+2.5) for $45M, for a pre-money valuation of $135M or post money valuation of $180M.  Could that be?  Maybe it was actually a pre-money valuation of $180M and a post money valuation of $225M, meaning that the $45M actually got the new investors 20% in all.

Who knows.  I could be way off, but if that is somewhat right, what then would New Site’s valuation be?

Paid Content says 10% for $100M, for a valuation of $1B.  Hmm.  Maybe:

Keep in mind that Joost’s funding for $45 million is for a distribution service with a number of content deals but relying on a viral audience. NewCo says its distribution deals lock in access to 96-98 percent of U.S. internet users; it has its own content and non-equity, non-exclusive content deals so far with Comcast and CNET Networks.

Yeah, crazy times.  But then at that valuation, who knows, maybe Joost actually got a far, far greater valuation and my assumption that each VC would demand at least 10% is way, way off.  Come to think of it, no way would the Joost guys - who got $4B from eBay for Skype - value their baby so little.

Any thoughts?