Blog advertising network Federated Media Inc. confirms to Tech Confidential that it has raised capital, announcing a $50 million minority investment from Oak Investment Partners. Conspicuously absent from its official statement is any discussion of the company's valuation, although it has been
pegged at $200 million.
While that valuation remained consistent in various rumored reports, the apparent size of the round
grew as
time went on. Federated Media hasn't released any revenue figures but says it reached profitability in the third quarter of 2007. Observers say it posted $25 million in sales last year and expects $60 million in 2008. The company has retained
GCA Savvian Advisors LLC to explore strategic opportunities as well, although it
denied that it was exploring a sale last fall.
Omidyar Network Commons LLC, J.P. Morgan Partners, Panorama Capital and various individual investors had previously invested in Federated Media, but the new funding dwarfs all of its previous investments. A company spokesperson declined to pin down an exact dollar amount, but its previous funding is thought to be in the single-digit millions.
Founded by former
Wired editor,
Industry Standard creator and
The Search author John Battelle, Federated Media didn't directly address the uses of the proceeds, but some have
speculated that it may begin to acquire equity in some of the blogs for which it supplies advertising.
-- Paul BonanosSee Apr. 14 post from PEHubSee October 2007 post from Tech Confidential
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