I agree with you: it's completely nonsense to sell a company for anything less than 5x annual revenue. However, I'm not so sure about the TC annual revenues you refer to (>7.5MM/year). The only source I could find is a Wired article back from 2007 (http://www.wired.com/techbiz/people/magazine/15-07/ff_arring...), where Arrington says revenues are about 200k/month = 2.4MM/year.