Assets, equity, and cash flow.
35% decrease in revenue in 2013
50% decrease in revenue over 2013 with 29 days left in this year.
Giving the benefit of the doubt that 20k will be made in 2014 EOY, you've dropped revenue nearly 68% in total in just 2 calendar years.
The valuation is about cash flow, since any assets (mostly content), is already more than likely 2 years old and aging in the best case scenario.
It doesn't appear that the traffic is enough, or of the quality to keep the revenue stream steady, or the content is not compelling, unique, and has interest to make sales.
It's all about cash flow. People don't buy potential, they buy assets, cash flow, and equity. If the trend that has happened so far in the last two years continues, this business makes less than 5000 dollars next year, and 2K the year beyond in 2016.
This is a fire sale.
.