There's not many businesses that are worth $1.6 billion dollars. I know I'm stating the obvious here, but that's a lot of cash. Yet that's excactly how much an unnamed investor is offering for Glam Media, a women's advertising network that shills its ad content to a myriad of websites and blogs. What's interesting about the proposed deal is not only that sources say Glam's going to turn it down, according to VentureBeat, but that Glam apparently has been tightening its belt, and has had some troubles. According to TechCrunch: "Last year the company lost $3.7 million on $21 million in revenue....If Glam is on target, a $1.3 Billion acquisition would be 8.7 times revenues and 32.5 times estimated profits."

So why would an investor propose the deal in the first place - and why would Glam turn it down!? Here's one possibility: yesterday we wrote about the struggle many Web 2.0 companies are having monetizing their sites (despite the fact that VCS continue to throw cash at them). Glam is at the forefront of web marketing, and is actually the fast-growing online advertiser. This week they announced a new video offering intended to make it easier to monetize videos. If Glam is actually biting on ways to rake in more online revenues, a $1.6 billion investment makes sense. Sort of. What's still surprising is that Glam thinks it's worth more than that. Sounds like they may be mistakenly tearing a page out of Yahoo's playbook.