Federated Media Receives $40M-$50M, From Oak And Others: Report
Federated Media, the online blog ad network founded by John Battelle, has raised between $40 million and $50 million, in its third round of funding at a $200 million pre-money valuation, reports PEHub, citing sources. The round was led by late-stage investor Oak Investment Partners, and included return backers Omidyar Network and Panorama Capital, the report says. The company has about $25 million in 2007 revenue, and expects around $60 million this year, a big jump despite a dicey economy. The story says a formal announcement is expected later this week.
We first reported in Jan that the company hired a banker to do the $50 million raise, and look at other strategic options. VentureBeat has a similar amount of raise in a later report.
The company sells text and video ads across a number of blogs in different categories, and has started getting into events as well. It has raised two rounds of funding, the second for $4.5 million.
Related StoriesPosted In: Advertising, Money, M&A & Venture Capital, Venture Capital, federated media, john battelle, oak investment partners, omidyar network, panorama capital, savvian
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Comments (3)
Apr 14, 2008 4:14 AM
This valuation and level of investment seems to support the view that online advertising revenues will not only be sustained, but could accelerate, as recession sets in.
I guess the result will be two fold. Print publishers will move online more aggressively to get some of the ad spend back. Niche online publishers, such as the Federated Media sites, will prosper s advertisiers look for more targeted inventory.
Interesting times.
Apr 14, 2008 1:21 PM
FM needs to roll up some publishers and focus on its core verticals:
http://sramanamitra.com/2008/03/12/deal-radar-2008-federated-media-needs-to-focus/
Apr 14, 2008 2:54 PM
Also, here’s a quick take on where this whole vertical ad network movement is headed:
http://sramanamitra.com/2008/04/14/vertical-ad-networks-evolution/