LifeHacker worth $6 million?

Jason Calacanis has posted a piece on how he arrived at the $6 million price tag for LifeHacker. It serves as a good benchmark for other valuations in the field of professional blogging:

Update: Someone asked me how I got to the $5-12 RPM number. Let me explain. RPM is revenue per thousand pages. You get this number by adding up the value of all the ads on the page. In LifeHackers case that is three graphical ads and the text links on the side of the page. The leaderboard is a $12-15 CPM (cost per thousand impressions) unit, the skyscraper is an $8-12CPM unit, and the medium rectangle down the page is a $4-8CPM unit. The text links are another $1-2CPM. If you sold those units out at full price at the low end of the range ($12 + $8 + $4 + $1 = $25 CPM) you would make 7,000 x $25, or $175,000 a month. At the high-end of the range even more--but most deals are not at the highend of course. Also, very few blogs are sold out, so if LifeHacker sold 1/7th of their inventory that would be $25k a month, if they sold out half their inventory that would be $80k a month--you get the idea. My guess is they sell 1/3rd and are doing $50k a month or $600k a year. That makes LifeHacker worth 5-10x the revenue number in this market to a buyer, or $3-6M. That is what someone like CNET would pay for it. In a don market you might get 2-4x revenue, or $1-2M.