[Posted on April 15, 2008 - 8:00 AM]
E-mail
del.icio.us
Technorati
Digg
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 Bonanos
See Apr. 14 post from PEHub
See October 2007 post from Tech Confidential
Also From Tech Confidential
- Venture capitalists: Don't blame us
- Vishay yanks International Rectifier offer
- CEO of Wix, sporting $3.5M second round, feels 'lucky'
- Video Exclusive: Vitals.com finds physicians, draws first institutional VC round
- Seesmic steps up layoffs, look out below
