Category Archives: Media

Virtual television network start-up has raised $8 million in second round

The virtual television network start-up RayV Ltd. has raised $8 million in its second financing round as the money is coming from Accel Partners.

RayV describes its business as follows: “Why is everybody so hell-bent on replacing TV? We here at RayV, like TV. The only thing is, we want more of it.

Sure, we love the big networks – after all, they show us all the live Paris Hilton we can handle – and lots of other stuff too. We just want it at high quality on our TVs and on our PCs, anywhere in the world… and more…

We also want to watch live news channels from smaller, independent sources with correspondents around the world. We want channels of live performances from the newest bands at the University of Calcutta. And live coverage of rugby matches from England. And short-film channels from NYU Film School students. And coverage of local politics. And cooking channels for Vegans. And cooking channels for Carnivors. And…

Well, you get the point: TV – real, live, 24-hour TV channels – at TV quality. For the PC, for the TV. For anyone to watch… and for anyone to broadcast. At no cost. We like TV. In the next months, we’re going to give everyone the power to make more of it. Much more!”

Sounds like Joost.. or no. Too early to say whatever, still nothing is publicly available so only time will tell.

Other online sources are describing the company that it has plans to offer a new way for “consumers to find, review, and talk about local businesses. A cross between a web-based social community and an online business directory, RAYV is where people go to express their opinions on any type of local business and get recommendations from a trusted source – their peers.” And yet another description: RayV is developing “proprietary internet protocols forming a generic grid network, enabling anyone to broadcast LIVE TV to an unlimited amount of concurrent viewers at zero cost.”

Which is which? If the second one is anywhere close the truth it sounds intriguing from technological perspective, which anyone of the leading video sites on Web might be quite interested in.

Founded 20 months ago by Omer Luzzatti, Ron Zuckerman, and Oleg Levy, the company has been operating in stealth mode. Levy was previously an executive at Kagoor, which was acquired by Juniper Networks Inc. (Nasdaq:JNPR) in 2005, and then served at Juniper’s Israeli R&D center. Zuckerman has been a well-known entrepreneur for the past 15 years. He has been an angel investor in several start-ups, including Wintegra Inc., Aeronautics Defense Systems Ltd., Koolanoo Group Ltd., Attunity (Nasdaq: ATTU), Can-Fite BioPharma Ltd. (TASE:CFBI), and e-Glue Business Technologies Ltd.

The company is based in both locations Tel Aviv, Israel and New York, US.

Accel Partners was founded 24 years ago and manages $4 billion. It is one of the most active venture capital funds in Israel, and has offices in California, Europe, and China. Accel Europe manages $1 billion in two funds, both of which make investments in Israel.

Other video and TV related ventures Aceel has put money in are Brightcove and Metacafe.

Israel on the other hand seems to be pretty strong in the Internet TV arena, with some leading companies like BlogTV, Metacafe, and 5min.

No publicly available information was found about their first round of funding and who their other investors are.

More

http://www.rayv.com/
http://www.accel.com/
http://www.globes.co.il/serveen/globes/docview.asp?did=1000261513&fid=942
http://archive.globes.co.il/ENGLISH/index.asp?ID=1000261513
http://www.thealarmclock.com/mt/archives/2007/10/israeli_virtual.html
http://www.marketwatch.com/news/story/virtual-tv-co-rayv-raises/story.aspx?guid=%7BC1A7A1B5-0344-4585-94E0-D20D1B1C5116%7D
http://israelplug.com/business/israeli-tv-startup-rayv-raises-8m/

After Last.fm, Wallstrip CBS has now acquired Dotspotter

Online gossip site Dotspotter has been acquired by CBS for $10 million. In Digg style Dotspotter lets users offer up celebrity news, video clips, images, articles and sightings for your leisurely enjoyment. You can vote up the ones you like and vote down the ones you hate.

After acquiring Last.fm for $280M CBS president Leslie Moonves laid out an online marketing strategy, which most likely includes the current acquisition. As Valleywag pointed out Dotspotter’s short one-year lifespan didn’t scare off serial charmer Quincy Smith, the startup-mad head of CBS Interactive. Earlier CBS has also bought the financial video blog Wallstrip. Sources also claim that one of Dotspotter’s beneficiaries is Facebook CFO Gideon Yu.

According to Quantcast the site is getting less than 600,000 American unique visitors per month. Compete is reporting for pretty much the same number of visitors. At the time the deal was announced (Oct 2006) the site had only 280,000 users a month according to Compete. This compared to the 3.6 million for TMZ and 1.5 million for PerezHilton, perhaps the most popular entertainment blog.

The company is founded by Anthony Soohoo, who is a former Yahoo exec.  It would appear that Anthony Soohoo made the right choice by leaving Yahoo back in March 2006.

The price seems pretty high for a sector which is crowded with more high profile celebrity blogs/sites like TMZ.com, PerezHilton, and others as well as the fact that the site has only been launched mid-January last year. Online sources close to the situation tell the price is not for the site itself, but the team that has built it. Structured this way the deal may also include a heavy earn-out component.

CBS has launched celebrity news before like the site Showbuzz in June 2006, but things did not go any further. CBS also produces two celebrity tabloid shows The Insider and ET.

At the end of the day it appears as a nice exit for the investors since the site is said to have only raised seed money from angels and the amount is rumored to be less than $1M. Gideon Yu is one of the investors, along with couple of other angels.

More about Dotspotter

Dotspotter is a new way to explore and enjoy pop culture. We’re the community that lets users discover, share and talk about the people, places and ideas that are defining what’s hot and happening. People use Dotspotter to find the latest scoops, gab with their friends, share celebrity sightings and cast their votes on the pop culture topics that they care about.

People join for many different reasons. Whether you want to try your skills at breaking celebrity gossip (you know, bring out your inner paparazzi!) or you just want to have fun socializing with others, Dotspotter members can do it all. And the best part is that joining Dotspotter is absolutely FREE. All that’s needed to join Dotspotter is a valid email address. Once you register, join the topics that interest you and connect with people like you who have a passion for all things pop culture!

Dotspotter is made up of many different and interesting people with a common interest centered on pop culture entertainment. Join in the discussions, participate in the community and make new friends.

About CBS Interactive

As the online extension of America’s most-watched network, CBS Interactive enhances the viewer experience with best-of-breed content from some of the biggest brands in television across multiple platforms.

CBS has partnered with a collection of leading next-generation companies to create the CBS Audience Network, the web’s first and largest professional video content network, delivering reach and targeting capabilities to our advertisers. The result… the best lineup of full-length and short-form clips from CBS, CSTV and Showtime are now available to over 140 million uniques per month reaching 89% of the Web. Some of the online brands include: CBSSports.com, NCAASports.com, CBSNews.com, TheShowbuzz.com, Wallstrip, CBS.com, STARTREK.COM, Last.fm, CBS Audience Network, CBS Games and CBS Mobile.

Oddly but Dotspotter does not appear as a stand alone online destination/brand.

More

http://www.dotspotter.com
http://www.cbs.com/
http://valleywag.com/tech/acquisitions/cbs-eyes-gossip-site-for-10-million-309047.php
http://mashable.com/2007/10/10/cbs-dotspotter/
http://www.quantcast.com/dotspotter.com
http://siteanalytics.compete.com/dotspotter.com/?metric=uv
http://www.thealarmclock.com/mt/archives/2007/10/pink_pop_cultur.html
http://blogs.business2.com/startups/2007/06/thousands-of-ma.html
http://www.paidcontent.org/entry/419-cbs-buys-a-year-old-celebrity-gossip-blog-dotspotter-price-around-10-mi/
http://www.alleyinsider.com/2007/10/cbs-buys-celeb-.html
http://www.cbscorporation.com/
http://www.cbsdigitalmedia.com/

RockYou named one of the top innovations for 2007

RockYou is amongst the top 6 innovation leaps for 2007 according CNN. Below is what Michael V. Copeland from Fortune wrote about the company.

While the giants of social networking battle for the attention of Internet users, the guys behind RockYou are happy to sit in the middle. They make their money shipping the tiny apps known as widgets that add value to the Web sites–and generate ad revenue for RockYou. “MySpace and Facebook are like my two divorced parents,” says Shen, who launched the company with Tokuda in 2005. “And I am their child whose love they are trying to buy.”

No wonder. RockYou today is the hottest widget factory on the Web. More than 35 million people in 200 countries have used its little programs, which rack up 180 million page views per day. What do RockYou’s widgets do? The things people who populate MySpace and Facebook love to do, like post silly notes and videos on RockYou’s Super-Wall, quiz each other with RockYou’s Likeness’s trivia questions, or test their astrological waters via RockYou’s Horoscope. Look for the company’s widgets to start showing up in your e-mail, your instant messages, and, perhaps by 2009, your cellphone.

Interesting fact is that RockYou seems to be heavily relying on organic traffic despite its popularity. On its home page it is clearly visible a text link “Create SlideShow” which points to: http://www.rockyou.com/slideshow-create.php. When searched on Google that page appears #3 out of millions results returned. http://www.google.com/search?num=100&hl=en&q=Create+SlideShow.

Indeed the company looks very healthy to us. Quantcast reports for almost 7M global unique visitors while the Americans alone are slightly over 2M/mo. Compete is showing pretty much the same number of visitors – almost 6M per month, only American traffic.

The company founders are Lance Tokuda and Jia Shen and RockYou is based in San Mateo, Calif. Co-Founders Lance Tokuda and Jia Shen were sued by their former employer Iconix in 2006. Iconix claimed Tokuda and Shen were working on a slideshow application for them at the same time the pair created RockYou. A preliminary injunction favored Iconix before the intellectual property theft case was settled out of court.

The company is partnering with some of today’s webs top sites like Bebo, Friendster, Flixter, WordPress and Hi5, among others.

Slide.com is  the RockYou’s main competitor. However now RockYou!’s Super Wall app has overtaken Slide’s similar FunWall app for the #1 spot, with 3.1 million daily active users. RockYou! has recently put up a press release claiming there are more popular than Slide, with CEO Lance Tokuda calling it “a significant milestone for RockYou.”
RockYou has recently signed a deal with PlayFirst, who just got $16.5M in series C round of funding led by DCM that included original investors Mayfield Fund, Trinity Ventures and Rustic Canyon Partners. The new round brings total funding for PlayFirst to $26.5 million. Under the deal RockYou will distribute PlayFirst games through its widget and social networking service, with Wedding Dash the first title to be made available to Facebook users. PlayFirst sees the deal a way of tapping into the growing popularity of social networking sites as a gaming platform.

Most recently, the company has also launched its own Facebook-specific ad network.

More about RockYou

RockYou is a leading provider of applications and widgets on the web. RockYou widgets include photo slideshows, glitter text, customized Facebook applications and voicemail accessories that are simple to use and enable people to frequently refresh their online style. Founded in 2006, RockYou has over 35 million users, serving over 180 million widget views per day in more than 200 countries. RockYou applications are customized for easy integration across all social networks including Facebook, MySpace, Bebo, Friendster, Tagged and hi5. RockYou’s cost-effective, results-focused advertising platform is the largest Ad Network on Facebook and the most dynamic method for rapidly acquiring Facebook application users. New applications can reach over 100k users in 24 hours, spanning a suite of applications across multiple publishing partners.

Widgets offered are as followed:

  • Slideshows (your photos with music, captions and a theme)
  • PhotoFX (stylize your photos)
  • Glitter FXtext (add glitter and more to your text)
  • FunNotes (choose a theme, caption and effects for your note)
  • Countdown Timer (countdown to important events)
  • Group Corkboard (you and your friends can add pictures, text and more to the corkboard)
  • MySpace Layouts (make your myspace page aesthetically pleasing)
  • ShoutOuts (record your voice and send it to a friend)
  • Scratcher (scratch your picture like a lottery ticket and see what’s hidden behind)
  • VoiceMail (allows your friends to leave voice comments on your page)
  • Games (make your profile or blog more fun by adding games to it)
  • Horoscope (get daily horoscopes and find out your compatibility with friends)
  • Movies (let your friends know what your favorite movies are)
  • Avatars (create an animated version of yourself to put on your profile)

RockYou was originally named RockMySpace. RockYou is funded by Sequoia Capital, Partech International and Lightspeed Venture Partners. The company took funding in two rounds where Series A was $1.50M and the VCs participating were First Round Capital, Lightspeed Venture Partners and Sequoia Capital and the Series B round of funing was for $15.00M and participants were the same VCs plus Partech International. The total funding is $16.5M to date.

More about the Investors

Sequoia Capital
Sequoia Capital provides startup venture capital for very smart people who want to turn ideas into companies. As the “Entrepreneurs Behind the Entrepreneurs”, Sequoia Capital’s Partners have worked with innovators such as Steve Jobs of Apple Computer, Larry Ellison of Oracle, Bob Swanson of Linear Technology, Sandy Lerner and Len Bozack of Cisco Systems, Dan Warmenhoven of Network Appliance, Jerry Yang and David Filo of Yahoo!, Jen-Hsun Huang of nVIDIA, Michael Marks of Flextronics, Larry Page and Sergey Brin of Google, Chad Hurley and Steve Chen of YouTube, Steve Goldman and Sujal Patel of Isilon Systems and Dominic Orr and Keerti Melkote of Aruba Wireless Networks. To learn more about Sequoia Capital visit www.sequoiacap.com.

Lightspeed Venture Partners
Lightspeed Venture Partners combines extensive venture capital and operating experience to assist entrepreneurs in creating industry-leading technology companies. Lightspeed manages $1.3 billion of committed capital and focuses on seed and early-stage information technology investments in the U.S., Israel and Asia. The firm’s partners have invested in more than 100 technology companies over the past two decades and have contributed to the success of market leaders including Blue Nile, Brocade, Ciena, Galileo Technology, Informatica, Kiva Software, Metasolv, Phone.com, Quantum Effect Devices, Sirocco and Waveset. For more information, please visit our Website at www.lightspeedvp.com.

Partech International
Founded in 1982, Partech International is a leading global venture capital firm with $850M under management and offices in the U.S., Europe and Israel. Partech invests exclusively in Information Technology and the firm’s internationally integrated team of investing partners work together closely to find the most innovative companies demonstrating high return potential and disruptive technologies in the Software & Internet, Communications & Components and Healthcare IT sectors. Partech has a unique 20+ year track record assisting its portfolio companies to become global market leaders. To learn more go to www.partechvc.com.

We basically think RockYou is one of the top acquisition targets for 2008 as the price could be anything but in the “hundreds of millions” range.

More

http://www.rockyou.com/
http://www.rockyou.com/corp/about.php
http://money.cnn.com/galleries/2007/fortune/0712/gallery.sixleaps.fortune/4.html
http://www.techcrunch.com/2007/03/05/more-information-on-rockyou-financing/
http://www.crunchbase.com/company/RockYou
http://www.techcrunch.com/2007/12/02/rockyou-app-slides-to-top-spot-on-facebook/
http://www.readwriteweb.com/archives/rockyou_vs_slide_facebook_app_developers.php
http://widgetygoodness.com/2007/12/03/rockyou-number-one-widget-maker/
http://venturebeat.com/2007/12/02/rockyou-climbing-past-slide-to-be-number-one-widget-maker/
http://www.techcrunch.com/2007/12/18/playfirst-takes-165-million-series-c-inks-deal-with-rockyou/
http://adage.com/article?article_id=121326&search_phrase=rockyou
http://www.usatoday.com/money/industries/technology/2007-11-26-widgets_N.htm
http://internetcommunications.tmcnet.com/topics/enterprise/articles/14503-zazzle-rockyou-offer-custom-glittertext-products.htm
http://www.cio.co.uk/concern/infrastructurerefresh/features/index.cfm?articleid=551
http://mashable.com/2007/11/13/zazzle-rockyou/
http://xml.sys-con.com/read/456371.htm
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/02/AR2007110201894.html?hpid=moreheadlines
http://www.forbes.com/business/2007/11/01/facebook-rockyou-google-technology-cz_vb_1102rockyou.html
http://www.webware.com/8301-1_109-9805410-2.html
http://www.latimes.com/technology/la-fi-google31oct31,1,5536114.story?coll=la-headlines-technology&ctrack=1&cset=true
http://www.mercurynews.com/business/ci_7110470
http://online.wsj.com/public/article/SB119370202753875653.html
http://www.quantcast.com/rockyou.com
http://siteanalytics.compete.com/rockyou.com/?metric=uv
http://uk.intruders.tv/Jia-Shen-of-RockYou_a231.html

AOL‘s Platform-A gets the fourth ad company under its umbrella

AOL has finally completed the acquisition of online advertising company Quigo. Quigo is a provider of contextual advertising on third-party publisher Websites, much like AdSense and Yahoo Publisher Network. The company offers a variety of different advertising formats including text, banners, and video, and sells them on a CPC, CPM, or “cost per time” basis. AOL had originally announced its intention to acquire Quigo on November 7, 2007.

Financial terms of the deal were not publicly disclosed, though we’ve found information on Web from different sources claiming the sale is said to be around $340 Million.

According AOL officials, Quigo will operate as a wholly owned subsidiary of AOL within its Platform-A organization, which is focused on unifying the company’s many online advertising divisions, which include Advertising.com, Tacoda, Adtech, among others. The acquisition of Quigo lets AOL expand the use of contextual advertising — which matches ads to the contents of a Web page — across AOL’s own Web pages, as well as its third-party networks, sites and publishers. Quigo is expected to bring in $100 million a year as it stands.

Now that the acquisition is final, and AOL is showing intentions to actually do something with a company it purchased, the unification strategy could actually work to make them a significant player in the online ad world in the face of the present dominant role of Google.
What Quigo basically offers is transparency and control in what can often be an opaque business: advertisers pay Yahoo and Google for contextual ad placement on a wide variety of Web pages, but get little say over where those ads run or even a list of sites where they do appear.

Quigo, by contrast, gives advertisers not only the list of specific sites where their ads have appeared but also the opportunity to buy only on specific Web sites or particular pages on those sites. It also allows media company sites like ESPN.com and FoxNews.com a chance to manage their own relationships with advertisers.

Although Quigo remains a small competitor, with less than 10 percent of the contextual ad business, its growing success has apparently persuaded Google, which is accustomed to calling the shots in all aspects of its business, that it has to change the way it sells the sponsored link ads in the future.

More about Quigo

Quigo – www.quigo.com – recently named Company of the Year by AlwaysOn Media – provides innovative performance marketing solutions for advertisers and premium publishers. Quigo’s AdSonar is a leading network of top-tier websites offering a broad range of advertising solutions. AdSonar’s content-targeted sponsored links are distributed to many of the web’s most recognized sites including CNNMoney.com, TIME.com, People.com, ESPN.com, Forbes.com, TheStreet.com, FoxNews.com, CareerBuilder.com, LonelyPlanet.com and on over 200 local, regional and national newspaper and television sites including those of ABC, Tribune Interactive, Fox, The Hearst Company, The McClatchy Company, Morris Communications, Media News Group, New York Daily News, New York Post, Scripps, Stephens Media, USA Today, and others. AdSonar offers advertisers multiple targeting options for their campaigns; including national and local targeting by vertical category, site, individual page, section, topic, and/or keyword. Quigo’s suite of search marketing solutions, including its flagship FeedPoint product, offers scalable, technology-driven services to help leading e-commerce and directory sites drive traffic, acquire new customers, and maximize revenue and profits.

Founded in 2000, Quigo’s primary venture backers include Highland Capital, Steamboat Ventures (the venture capital arm of The Walt Disney Company), and Institutional Venture Partners.

Management team

Michael Fisher: President. 

As President, Mike is responsible for all aspects of the company’s business. Prior to joining Quigo in 2005, he served as Vice President, Engineering & Architecture for PayPal, Inc. an eBay company. Prior to joining PayPal, Mike spent seven years at General Electric helping to develop the company’s technology strategy and processes. He attended the United States Military Academy in West Point, New York where he received a Bachelor of Science degree in Computer Science. Mike also holds a Master of Science and PhD in Information Systems and a Master of Business Administration.

Kevin Fortuna: Chief Strategy Officer. 

As CSO, Kevin leads AdSonar and PageCast, Quigo’s advertising and video content targeting platforms, as well as the Finance and Marketing teams. Prior to joining Quigo in 2005, he was the founder and Managing Partner of Dedalus Capital, a boutique M&A consultancy and venture firm. Before Dedalus, Kevin was the VP, Business Development at two IPO-track internet companies: Juno Online Services and CNET/Snap.com. He graduated summa cum laude from Georgetown University and is a member of Phi Beta Kappa.

David Sasson: Chief Operating Officer. 

As COO, David leads the FeedPoint division and Quigo’s Product Management team. Prior to joining Quigo in 2004, David was Vice President of Advertising Systems at Juno Online Services, where he developed new advertising technologies and managed client services. David was also co-founder & COO of Advocacy Inc., a leading interactive agency for political campaigns, congressional offices and issue advocacy. David is a Phi Beta Kappa, magna cum laude graduate of Haverford College, where he earned a Bachelor of Arts degree.

Geoffrey Weber: Chief Technology Officer. 

As CTO, Geoffrey oversees the Engineering, Tech Operations, Information Technology and Quality Assurance teams. He has over 25 years of Technology experience, and previously served in several management positions at eBay including: Director of eBay Site Operations and Director of Financial Systems, PayPal. Prior to joining eBay, Geoffrey spent 10 years in an independent consulting practice building highly scalable solutions for clients such as: NEC, Sprint, Sun Microsystems, Sybase, Franklin-Templeton, and Providian Financial. He studied Mathematics and French Literature at the University of California, Berkeley.

About AOL

AOL is a global Web services company that operates some of the most popular Web destinations, offers a comprehensive suite of free software and services, runs one of the largest Internet access businesses in the U.S., and provides a full set of advertising solutions. A majority-owned subsidiary of Time Warner Inc. (NYSE:TWX – News), AOL LLC and its subsidiaries have operations in the U.S., Europe, Canada and Asia. Learn more at AOL.com.

Time Warner’s AOL unit purchased four advertising companies in 2007, including Quigo Technologies Inc. Quigo is the fourth advertising company AOL has acquired during 2007. Earlier in the year, AOL acquired Third Screen Media, a leader in mobile advertising, ADTECH, a leading ad serving platform based in Frankfurt, Germany, and TACODA, a leading behavioral targeting company.

Platform-A is said to be reaching over 90% of the online audience.

In related news Quigo’s CEO Mike Yavonditte will depart the company. He’ll spend the next six months as an adviser to Curt Viebranz, president of AOL’s Platform A advertising division. Instead the Quigo CTO Michael Fisher will become president of the subsidiary.

Michael Yavonditte is a veteran of new media and technology. Prior to being named CEO of Quigo, he served as VP of Sales for USA Networks Electronic Commerce Solutions Group. He managed the e-commerce operations for CBS Sportsline, Nascar.com and the National Hockey League. In 2000, he joined AltaVista, where he negotiated and closed several large, multi-year, multi-million dollar agreements for the company. Mr. Yavonditte started his career at Ziff-Davis Publishing in NY where he held various sales and management roles. In 6 years he took Quigo from a start up to the predominant performance-driven, ad auction-based, pay-per-click advertising company in the industry.

The deal is yet another part of the major shakeout and consolidation that took place within the online ad industry through out the entire 2007 and is one of the web’s biggest deals for the 2007 we have listed and ranked yesterday. 

AOL chairman and CEO Randy Falco stated, “Quigo is an important part of our new Platform-A organization that we announced in September.”  Platform-A is, by all accounts, the future of AOL.

More

http://www.quigo.com/
http://www.quigoblog.com/
http://www.timewarner.com/corp/newsroom/pr/0,20812,1697295,00.html
http://mashable.com/2007/12/30/aols-quigo-acquisition-complete/
http://directmag.com/news/aol-122107/
http://valleywag.com/336627/quigo-ceo-departs-as-aol-completes-takeover
https://web2innovations.com/money/2007/12/31/some-of-the-web%e2%80%99s-biggest-acquisition-deals-during-2007/
http://biz.yahoo.com/bw/071220/20071220005128.html?.v=1 http://www.nytimes.com/2007/02/26/business/media/26adco.html?_r=1&oref=slogin
http://www.tmcnet.com/viewette.aspx?u=http%3a%2f%2fwww.tmcnet.com%2fnews%2f2007%2f12%2f21%2f3181294.htm
http://www.webpronews.com/topnews/2007/12/21/aol-finishes-quigo-acquisition
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5572035
http://www.bloomberg.com/apps/news?pid=20601103&sid=asbgoM.LLJg0&refer=us
http://www.foxbusiness.com/markets/industries/media/article/aol-completes-acquisition-quigo_414972_15.html
http://www.pehub.com/article/articledetail.php?articlepostid=9529

Some of the web’s biggest acquisition deals during 2007

As the end of the year approaches us we would like to briefly sum up some of the web’s biggest acquisition deals for the 2007, as we know them. 

All deals will logically be ranked by their sizes and less weight will be put on the time the deal happened through out the year. Deals from all IT industry sectors are considered and put in the list, from Web and Internet to the Mobile industry as well. The size’s criterion for a deal to make the list is to be arguably no less than $100M unless the deal is symbolic in one way or another or either of the companies involved was popular enough at the time the deal took place. Otherwise we think all deals are important, at least for its founders and investors.

Under no doubt the year we will remember with the number of high-profile advertising company acquisitions for large-scale companies like DoubleClick, aQuantive, RightMedia, 24/7 Real Media, among others. Putting all acquisition deals aside, one particular funding deal deserves to be mentioned too Facebook raised $240 million from Microsoft in return of just 1.6% of its equity. The Honk Kong Billionaire Li Ka-shing later joined the club of high-caliber investors in Facebook by putting down $60M for unknown equity position.  

Other remarkable funding deals include: Alibaba.com raised $1.3 Billion from its IPO; Kayak raised $196 Million; Demand Media took $100 Million in Series C; Zillow totaled $87 Million in venture capital funding; Joost announced $45 million funding from Sequoia, Index, CBS & Viacom, among others. 

Yet another noteworthy deal is the Automattic (wordpress.org) turning down a $200 Million Acquisition Offer. 

And the 2007 Web 2.0 Money winner is… Navteq for its deal with Nokia for $8B. Apparently Microsoft has this year lost the crown of being named the deepest pocket buyer.

Nokia Buys Navteq For $8 Billion, Bets Big On Location-Based Services

Nokia (NOK), the Finnish mobile phone giant with nearly a third of the global handset market, has decided to bet big on location based services (LBS), and is buying Chicago-based digital map company NAVTEQ (NVT) for $8.1 billion. That works out to about $78 a share. This is one of Nokia’s largest purchases to date — the Finnish mobile giant has a mixed track record when it comes to acquisitions. This is also the second megabillion dollar buyout in the maps (LBS) space.

SAP Germany makes its biggest deal ever – acquires Business Objects for 4.8B EURO (around ~$6.8 billion)

SAP, the world’s largest maker of business software, has agreed to acquire Business Objects SA for €4.8 billion euros, which was around ~$6.8 billion at the time the acquisition deal was announced. The deal is amongst the largest for 2007 alongside with Oracle’s Hyperion deal for over $3.3B and the Nokia’s Navteq for over $8B. [more]

Microsoft to buy Web ad firm aQuantive for $6 Billion

Microsoft Corp. acquired aQuantive Inc. for about $6 billion, or $66.50 a share, an 85 percent premium to the online advertising company’s closing price at the time the deal was publicly announced. Shares of aQuantive shot to $63.95 in pre-opening trade, following news of the deal. The all-cash deal tops a dramatic consolidation spree across the online advertising market sparked when Google Inc. agreed to buy DoubleClick for $3.1 billion.

Oracle to buy Hyperion in $3.3 Billion cash deal

Oracle Corp. has acquired business intelligence software vendor Hyperion Solutions Corp. for $3.3 billion in cash. Oracle has agreed to pay $52 per share for Hyperion, or about $3.3 billion, a premium of 21% over Hyperion’s closing share price at the time of the deal. Oracle said it will combine Hyperion’s software with its own business intelligence (BI) and analytics tools to offer customers a broad range of performance management capabilities, including planning, budgeting and operational analytics.

Cisco Buys WebEx for $3.2 Billion

Cisco has agreed to acquire WebEx for $3.2 billion in cash. In 2006, WebEx generated nearly $50 million in profit on $380 million in revenue. They have $300 million or so in cash on hand, so the net deal value is $2.9 billion.

DoubleClick Acquired by Google For $3.1 Billion In Cash

Google reached an agreement to acquire DoubleClick, the online advertising company, from two private equity firms for $3.1 billion in cash, the companies announced, an amount that was almost double the $1.65 billion in stock that Google paid for YouTube late last year. In the last month for this year the US Federal Trade Commission has granted its approval for Google to purchase DoubleClick.

TomTom Bought Tele Atlas for $2.5 Billion

It took $2.5 Billion dollars for TomTom to buy mapping software company TeleAtlas, this will set the stage for TomTom to be big rival of Garmin across Atlantic. Tele Atlas went public in 2000 on the Frankfurt Stock Exchange, and last year, it bought another mapping firm, New Hampshire-based GDT.

Naspers acquires yet another European company – Tradus for roughly $1.8 Billion

Simply put a fallen dot com star with eBay ambitious, once worth more than 2B British pound (around $4B) and collapsed down to £62M at the end of 2000 is now being basically said rescued by the South African media company Naspers that is spending money at breakneck pace. The offered price is £946M (more than $1.8B) based on just £60M annual revenues. [more]

HP acquired Opsware For $1.6 Billion

HP has acquired IT Automation company Opsware for $1.6 billion. Whilst any acquisition of this size is interesting in itself, the back story to Opsware is even more so; Opsware was originally LoudCloud, a Web 1.0 company that took $350 million in funding during the Web 1.0 boom.

AOL acquired TradeDoubler for $900 Million

AOL has acquired Sweden-based TradeDoubler, a performance marketing company, for €695 million in cash, which was about US$900 million at the time the deal took place.

Microsoft acquired Tellme Networks for reportedly $800 Million

Microsoft Corp. has announced it will acquire Tellme Networks, Inc., a leading provider of voice services for everyday life, including nationwide directory assistance, enterprise customer service and voice-enabled mobile search. Although the price remains undisclosed, it is estimated to be upwards of $800 million.

Disney acquires Club Penguin for up to $700 Million

Club Penguin, a social network/virtual world that has been on the market for some time, was acquired by The Walt Disney Company. An earlier deal with Sony fell apart over the Club Penguin’s policy of donating a substantial portion of profits to charity. The company, which launched in October 2005, has 700,000 current paid subscribers and 12 million activated users, primarily in the U.S. and Canada.The WSJ says the purchase price is $350 million in cash. Disney could pay up to another $350 million if certain performance targets are reached over the next couple of years, until 2009.

Yahoo acquired RightMedia for $680 Million in cash and stock

Yahoo has acquired the 80% of advertising network RightMedia that it doesn’t already own for $680 million in cash and Yahoo stock. Yahoo previously bought 20% of the company in a $45 million Series B round of funding announced in October 2006. The company has raised over $50 million to date.

WPP Acquires 24/7 Real Media for $649 Million

Online advertising services firm 24/7 Real Media was acquired by the WPP group for $649 million. The old time internet advertising firm had its origins serving ads for Yahoo! and Netscape in 1994 and was formerly founded the following year as Real Media. After numerous acquisitions it took its current name and grew to have 20 offices in 12 countries, serving over 200 billion advertising impressions every month.

Google bought the web security company Postini for $625M

Google has acquired e-mail security company Postini for $625 million, a move intended to attract more large businesses to Google Apps. More than 1,000 small businesses and universities currently use Google Apps, but ‘there has been a significant amount of interest from large businesses,’ Dave Girouard, vice president and general manager of Google Enterprise, said in a Monday teleconference.

EchoStar Acquires Sling Media for $380 Million

EchoStar Communications Corporation, the parent company for DISH Network, has announced its agreement to acquire Sling Media, creator of the Sling suite, which lets you do things like control your television shows at any time, from their computers or mobile phones, or record and watch TV on your PC or Windows-based mobile phone. The acquisition is for $380 million.

ValueClick acquired comparison shopping operator MeziMedia for up to $352 Million

ValueClick has acquired MeziMedia for up to $352 million, in a deal consisting of $100 million in upfront in cash, with an additional sum of up to $252 million to be paid depending on MeziMedia’s revenue and earnings performance through to 2009.

Yahoo Acquires Zimbra For $350 Million in Cash

Yahoo has acquired the open source online/offline office suite Zimbra. The price: $350 million, in cash, confirmed. Zimbra gained wide exposure at the 2005 Web 2.0 Conference. Recently they has also launched an offline functionality.

Business.com Sells for $350 Million

Business.com has closed another chapter in its long journey from a $7.5 million domain name bought on a hope and a prayer, selling to RH Donnelley for $350 million (WSJ reporting up to $360 million). RH Donnelley beat out Dow Jones and the New York Times during the bidding.

AOL acquired online advertising company Quigo for $350 Million

AOL announced plans to buy Quigo and its services for matching ads to the content of Web pages. The acquisition follows AOL’s September purchase of Tacoda, a leader in behavioral-targeting technology, and comes as AOL tries to boost its online advertising revenue to offset declines in Internet access subscriptions.

eBay bought StubHub For $310 Million

eBay has acquired the San Francisco-based StubHub for $285 million plus the cash on StubHub’s books, which is about $25 million.

Yahoo! Agreed to acquire BlueLithium for approximately $300 Million in cash

Yahoo! Inc. has entered into a definitive agreement to acquire BlueLithium, one of the largest and fastest growing online global ad networks that offers an array of direct response products and capabilities for advertisers and publishers. Under the terms of the agreement, Yahoo! will acquire BlueLithium for approximately $300 million in cash.

CBS to buy social network Last.fm for $280 Million

CBS is known to have paid $280 million for the Last.fm site, which caters to music fans. CBS Corp bought the popular social networking website organized around musical tastes for $280 million, combining a traditional broadcast giant with an early leader in online radio. Last.fm, claims more than 15 million monthly users, including more than 4 million in the U.S.

AOL Acquired Tacoda, a behavior targeting advertising company for reportedly $275 Million

AOL has announced the acquisition of New York-based Tacoda earlier this year, a behavior targeting advertising company that was founded in 2001. The deal size, which we haven’t had confirmed, is likely far smaller than Microsoft’s $6 billion for aQuantive , Yahoo’s $680 million for RightMedia , or Google’s $3.1 billion for DoubleClick. The price might be low enough that it isn’t being disclosed at all.Jack Myers Media Business Report has confirmed the $275 million price tag

MySpace to acquire Photobucket For $250 Million

MySpace has acquired Photobucket for $250 million in cash. There is also an earn-out for up to an additional $50 million. Oddly enough MySapce has dropped Photobucket off its social networking platform. The dispute that led to the Photobucket videos being blocked on MySpace letter also led to acquisition discussions, and the block was removed. They have hired Lehman Brothers to help sell the company. They were looking for $300 million or more, but may have had few bidders other than MySpace.

Hitwise Acquired by Experian for $240M

Hitwise, the company that performs analysis of log files from 25 million worldwide ISP accounts to provide relative market share graphs for web properties, has been acquired by Experian for $240 million.

$200+ Million for Fandango

Comcast paid $200 million or perhaps a bit more. Fandango revenue is said to be in the $50m/year range, split roughly evenly between ticket sales and advertising. Wachovia Securities analyst Jeff Wlodarczak estimated the multiple-system operator paid $200 million for Fandango, whose backers include seven of the 10 largest U.S. movie exhibitors.

Intuit Acquires Homestead for $170 Million

Small business website creation service Homestead, started out in the web 1.0 era, announced tonight that it has been acquired by Intuit for $170m. In addition to Intuit’s personal and small business accounting software, and the company’s partnership with Google to integrate services like Maps listing and AdSense buys, Intuit customers will now presumably be able to put up websites quickly and easily with Homestead. [more]

Naspers Acquired Polish based IM Company Gadu Gadu (chit-chat) for reportedly $155 Million

South Africa’s biggest media group Naspers Ltd offered to buy all outstanding shares in Polish Internet firm Gadu Gadu S.A. ( GADU.WA ), a Polish IM service, for 23.50 zlotys ($8.77) per share. The current majority shareholder of Gadu Gadu has agreed to tender its 55% shareholding in the public tender offer. The price is $155M. [more] 

Studivz, a Germany Facebook clone, went for $132 Million

German Facebook clone Studivz has been sold to one of its investors, Georg von Holtzbrinck GmbH, a German publishing group, for €100 million (about $132 million). Other investors of Studivz include the Samwer brothers, founders of ringtone company Jamba (sold for €270M) and Alando (sold to eBay for €43M in 1999).

Feedburner goes to Google for $100 Million

Feedburner was acquired by Google for around $100 million. The deal is all cash and mostly upfront, according to sources, although the founders will be locked in for a couple of years.

Answers.com has purchased Dictionary.com for reportedly $100 Million

Question and answer reference site Answers.com has acquired Dictionary.com’s parent company, Lexico Publishing, for $100 million in cash. Lexico can really serve all your lexical needs because it also owns Thesaurus.com and Reference.com.

Yahoo Acquires Rivals for $100 Million

Yahoo has acquired college sports site Rivals.com, reported the Associated Press in a story earlier this year. The price is not being disclosed, although the rumor is that the deal was closed for around $100 million. Rumors of talks first surfaced in April 2007.

UGO Acquired By Hearst for reportedly $100 Million

Hearst has acquired New-York based UGO. Forbes reported the price should be around $100 million. UGO is a popular new media site that was founded in 1997 and, according to Forbes, is generating around $30 million/year in revenue. UGO media is yet another web 1.0 veteran and survivor.

Fotolog Acquired by Hi Media, French Ad Network for $90 Million
 
New York-based Fotolog been acquired by Hi Media, a Paris-based interactive media company for roughly $90 million – a combination of cash and stock, according to well-placed sources. 

Online Backup Startup Mozy Acquired By EMC For $76 Million

Online storage startup Mozy, headquartered in Utah, has been acquired by EMC Corporation, a public storage company with a nearly $40 billion market cap. EMC paid $76 million for the company, according to two sources close to the deal.

eBay Acquiring StumbleUpon for $75 Million

The startup StumbleUpon has been rumored to be in acquisition discussions since at least last November (2006). The small company had reportedly talks with Google, AOL and eBay as potential suitors. At the end of the day the start-up got acquired by eBay. The price was $75 million, which is symbolic with the fact the site had only 1.5m unique visitors per month at the time the deal took place. The company was rumored to be cash-positive.

General Atlantic Has Acquired Domain Name Pioneer Network Solutions

General Atlantic has acquired Network Solutions from Najafi Companies. Network Solutions was founded decades ago in 1973 and had a monopoly on domain name registration for years which led Verisign to pay billions to buy it. Najafi Companies purchased NS from VeriSign in November 2003 for just $100M. No financial terms were disclosed for the deal and no price tag is publicly available, although we believe it is way over $100M, but NS made our list due to its mythical role for the Internet’s development. That deal is symbolic for the Internet. 

MSNBC made its first acquisition in its 11-year history, acquired Newsvine

In a recent deal the citizen journalism startup Newsvine has been acquired by MSNBC, the Microsoft/NBC joint venture, for an undisclosed sum. Newsvine will continue operating independently, just as it has been since launching in March of 2006. The acquired company also indicated there would be little change in the features of the site.  We think the price tag for the Newsvine is anywhere in the $50/$75M range, but this is not confirmed. [more]

Google to buy Adscape for $23 Million

After some rumors of a deal earlier this year, Google has expanded its advertising reach by moving into video game advertising with their $23 million acquisition of Adscape.

Disney buys Chinese mobile content provider Enorbus for around $20 Million

Disney has bought Chinese mobile gaming company Enorbus , for around $20 million, MocoNews.net has learned. Financial backers in the company included Carlyle and Qualcomm Ventures.

BBC Worldwide Acquires Lonely Planet

BBC Worldwide, the international arm of BBC, has acquired Lonely Planet, the Australia-based travel information group. The amount of the deal was not disclosed, but Lonely Planet founders Tony and Maureen Wheeler get to keep a 25% share in the company. We truly believe this deal is in the $100M range, but since no confirmation was found on Web and therefore we cannot put a price tag for the sake of the list. Even though a global brand their site is getting just 4M unique visitors per month.

AOL Acquires ADTECH AG

AOL has acquired a controlling interest in ADTECH AG, a leading international online ad-serving company based in Frankfurt, Germany. The acquisition provides AOL with an advanced ad-serving platform that includes an array of ad management and delivery applications enabling website publishers to manage traffic and report on their online advertising campaigns. No details about the acquisition price were found on Web but we would suspect a large-scale deal and rank it very high. 

Amazon Acquires dpreview.com

Amazon have announced the acquisition of the digital camera information and review site dpreview.com. UK based dpreview.com was founded in 1998 by Phil Askey as a site that publishes “unbiased reviews and original content regarding the latest in digital cameras. Dpreview.com has in excess of 7 million unique viewers monthly. The value of the deal was not disclosed but we believe the purchase price should be in the $100M range (not confirmed).

HP Acquired Tabblo

HP announced the acquisition of Cambridge, Massachusetts based Photo printing site Tabblo this morning. The price was not disclosed.

eBay Gets Stake in Turkish Auction Market

eBay announced yesterday that it has acquired a minority stake in Turkish-based GittiGidiyor.com, an online marketplace structured in a similar manner to eBay. GittiGidiyor reportedly has more than 400,000 listings and 17 million users, which is a considerable percentage of the Turkish population. With the stake in GittiGidiyor, eBay now has the opportunity to enter the Turkish market via a system that’s already similar to theirs in functionality and purpose. Istanbul-based GittiGidiyor.com was founded in 2000. GittiGidiyor is Turkish for Going, Going, Gone. Terms of the deals were not found publicly available. Looking at the size of the Turkish site and the buying habits and history of eBay, the price should be considerably high, at least for the region.

Microsoft Acquiring ScreenTonic for Mobile Ad Platform

Microsoft is acquiring ScreenTonic, a local-based ads delivery platform for mobile devices, for an undisclosed amount. Paris-based ScreenTonic was founded in 2001, and has created the Stamp platform to deliver text or banner links on portals, text message ads and mobile web page ads, that vary depending on the recipients’ geographical location in a so called geo-targeting approach. 

~~~

Naspers acquires yet another European company – Tradus

Simply put a fallen dot com star with eBay ambitious, once worth more than 2B British pound (around $4B) and collapsed down to £62M at the end of 2000 is now being basically said rescued by a South African media company that is spending money at breakneck pace. The offered price is £946M (more than $1.8B) based on just £60M annual revenues.

A month after Naspers acquired the Polish chat site Gadu Gadu for roughly $155M the media company from RSA is now making a major acquisition step in Europe. Naspers bid to buy the European online auction site Tradus for £946M. Naspers valued Tradus at nearly $2 Billion, which is 26.7% higher than the average share price during Naspers’ most recent half-year.

Some analysts compared the Naspers deal with the deal of eBay for Skype in 2005 – in other words overpaying for the purpose of its own expansion. With this deal Naspers said it is going to switch focus from operations on only ad-supported Web businesses to transaction-based e-commerce services.

In focusing on Internet expansion, Naspers has established a new company called MIH Internet, which operates under its Myriad International Holdings division. This makes sense for MIH to handle the acquisition of Tradus, as MIH already dabbles in emerging markets on a global scale, including M-Web and Tencent, among others.

Tradus, previously known as QXL Ricardo, has backed an £18-a-share offer from Africa’s largest media company, the owner of the Daily Sun newspaper and the pay-TV firm Multichoice, as part of its strategy for Internet expansion. The deal represents a 19 per cent premium on Tradus’s price of 1,510p a share, when the company first announced it was in takeover discussions on 6 November, and comes amid a renewed interest in online companies.

Tradus conducts online auctions across 12 European countries, mostly Eastern Europe. It was founded by a former Financial Times journalist, Tim Jackson, in 1997 and, after listing on the stock market in 1999, its value soared to £2 Billion in early 2000 on hopes it would become the European eBay. But just eight months later, it was worth only £62M as Internet stocks crashed.

Cobus Stofberg, Naspers’ chief executive, said: “The operations of the Naspers Group and Tradus complement each other perfectly, and significant advantages can be obtained by aligning Tradus’s businesses with Naspers’ other internet investments in Central and Eastern Europe.”

The deal, due to be completed by March, requires approval from Tradus shareholders, but the board has recommended investors accept the offer. Shares in the FTSE 250-listed group rose 12 per cent to £18.15.

Tradus was the subject of a failed takeover battle in 2005 between members of its management team and the consortium Florissant, backed by the UK private equity firm Novator.

Tradus’s pre-tax profits rose 28 per cent to £7.7M on revenues of £30.6M in the six months to the end of September.

An extremely positive deal for Tradus’ shareholders, the purchase is less obviously so for Naspers’. It earns three-quarters of its revenues in South Africa but is expanding at breakneck pace in China, Russia and other emerging markets. Tradus will complement its geographic reach, with a market-leading business in Poland. The lack, though, of operational overlap means no synergies are expected. And there must be suspicion that Naspers is overly keen to spend its $1.5Billion cash pile, two-thirds of which is offshore and must be spent before the year end or repatriated.

Admittedly, others share its optimism over Tradus’ prospects. Citi, even in these difficult days, is providing £700M of bridging finance. But Naspers’ shareholders seem warier this time around. The shares fell slightly after the deal was announced, suggesting a fear that the days of overpaying for internet companies with uncertain future revenues are not necessarily over.

In September 2007 QXL Ricardo (Tradus) has bought a 30 percent stake in Molotok.ru, an online auction site in Russia, for a relatively small sum of $1.5 million. The remaining 70 percent of the site is be owned by Russian portal Mail.ru. 

The company was known to be in deal talks, and there had been speculation that eBay and Alibaba.com were both interested in acquiring the Eastern Europe-focused site.

More about Tradus

Tradus provides online consumer trading platforms and related internet services in eleven European countries. These platforms connect buyers and sellers 24 hours a day, seven days a week in a safe, efficient, and entertaining environment. A wide selection of merchandise and services is available on our sites, ranging from consumer electronics and collectibles to clothing, lifestyle products, cars, car parts and real estate.

Tradus plc, formerly QXL Ricardo PLC, was established in September 1997 and its shares have been quoted on the London Stock Exchange since October 1999. Although the corporate headquarters are in London, most of the operations are located in our key countries across Europe, with the majority of staff being based in Poznan, Poland where our largest business is based. At the end of March 2007 there were over 400 employees in the Group, most of whom are dedicated customer service staff ensuring that the needs of our growing member base are met.

About Naspers

Naspers is a multinational media company with principal operations in electronic media (including pay-television, internet and instant-messaging subscriber platforms and the provision of related technologies) and print media (including the publishing, distribution and printing of magazines, newspapers and books, and the provision of private education services). Naspers’ most significant operations are located in South Africa, where it generates approximately 76.4% of its revenues, with other operations located elsewhere in Sub-Saharan Africa, Greece, Cyprus, the Netherlands, the United States, Thailand and China. Naspers creates media content, builds brand names around it, and manages the platforms distributing the content. Naspers delivers its content in a variety of forms and through a variety of channels, including television platforms, internet services, newspapers, magazines and books. Many of Naspers’ businesses hold leading market positions, and Naspers capitalises on these strong positions when expanding into new markets.

As a side note early this year Naspers announced voluntary delisting from NASDAQ and instead Naspers Limited Received Listing Approval for London Stock Exchange. Naspers is listed on the stock exchange in Johannesburg and up to date stock quote can be found over here: http://stocks.us.reuters.com/stocks/overview.asp?symbol=NPNJn.J

With the current acquisition Naspers is hoping to expand its instant messaging services beyond what it already owns in the sector. Naspers operates local IM/online services in Russia (Mail.ru), China (Tencent) and Thailand (M-Web/Sanook).

The company is headquartered in Cape Town, RSA. 

More

http://www.qxl.com/
http://www.qxl.com/investor_centre
http://www.naspers.com/English/home.asp
http://news.independent.co.uk/business/news/article3263632.ece
http://www.ft.com/cms/s/1/da97695c-ad4b-11dc-9386-0000779fd2ac.html
http://www.paidcontent.org/entry/419-tradus-auction-site-agrees-2-billion-takeover-by-south-africas-naspers/
http://mashable.com/2007/12/18/naspers-acquires-tradus/
http://www.paidcontent.co.uk/entry/419-online-auctioneer-qxl-ricardo-to-sell-to-naspers-for-up-to-800-report/
http://www.paidcontent.co.uk/entry/eurpean-company-qxl-ricardo-takes-30-percent-stake-in-russian-auction-site
https://web2innovations.com/money/2007/12/23/naspers-acquired-polish-based-im-company-gadu-gadu-chit-chat/
http://www.telecom.paper.nl/site/news_ta.asp?type=abstract&id=196998&nr=
http://www.tradus.com/news-item?item=56416543336883
 http://biz.yahoo.com/ic/56/56312.html

MSNBC made its first acquisition in its 11-year history, acquired Newsvine

In a recent deal the citizen journalism startup Newsvine has been acquired by MSNBC, the Microsoft/NBC joint venture, for an undisclosed sum.

Newsvine will continue operating independently, just as it has been since launching in March of 2006. The acquired company also indicated there would be little change in the features of the site. 

Newsvine is one of the good CJ [Citizen Journalism] web sites. Others include Digg, Reddit and Netscpae’s Propeller among others. Newsvine is a good example of a startup CJ site aimed to be a mainstream news destination in the future. Along with most of the other current CJ sites, Newsvine uses many of the ‘web 2.0’ functionalities in its design – such as user-generated content, reputation, voting, comments, friends lists, tags, and more. Newsvine was among the first sites on web to implement basic semantic tagging based on the content submitted. The first site, as far as we know, was NosyJoe.com with its intelligent tagging engine.  It allows users to ‘seed’ stories, by adding a link and short description. Users can also write a full article as well. Newsvine is arguably more advanced in its design than other CJ sites, often trying new things and design techniques – e.g. the Newsvine, a color-coded visual representation of a user’s impact on the site.

The site opened as a private beta in December 2005 and was officially launched on March 1, 2006. Newsvine CEO is Mike Davidson and the company is based in Seattle which is the home of MSNBC too. Calvin Tang is the Co-founder and COO. More details about Newsvine can be found below.

“Over the next few years, Newsvine technology and content will make its way onto msnbc.com, and vice-versa where it makes sense.” Davidson explained further.

Newsvine officially became part of MSNBC on Friday, October 5th, but Davidson said they’d “been talking since May.” The company will continue to be based in Seattle, perhaps due to the location of the MSNBC too.

What is MSNBC getting, anyway? Mostly the citizen journalism community and features combined with some basic (compared to MSNBC’s) traffic but representing a very loyal community. From our perspective this deal looks more like acquiring technologies, features and mostly practical experience from the citizen journalism and the social news sector. It could also be an employment through acquisition. Basically Newsvine successfully established and positioned itself especially within the social news arena yet the site cannot be clearly identified as a popular site with its only 1.2M unique visitors per month. So, MSNBC is clearly trying to tap into the social news space and is buying experience.

The following statement from the company supports out thinking:

“While Newsvine may be well known in early adopter circles, we want every college student, every farmer, every weekend journalist, and every household to have their own branch on the “Vine”.

Davidson, the Newsvine’s CEO has explained the reason why he sold out to MSNBC.
It seems it is all about scale and partnering with bigger media company to achieve that:

“Why would a young, efficient independent news startup become part of a large organization? For us, the answer is simple: it’s all about growing the community and spreading the idea of participatory news as far and wide as possible. Although going from zero to over a million users a month in less than two years is heartening, msnbc.com operates on another scale entirely. While Newsvine may be well known in early adopter circles, we want every college student, every farmer, every weekend journalist, and every household to have their own branch on the ‘Vine. In order to spread this idea further, we could have gone out and raised a lot of money, quadrupled our staff, and gone it alone, but when one of the finest news organizations in the world is headquartered right across Lake Washington, the potential of partnering with such a great team is dramatic. We feel strongly that we can learn from the successes of their experienced team, in a way that will empower Newsvine to become the worldwide mouthpiece of the citizen journalist.”

This is the MSNBC’s first acquisition in its 11-year history and is a good fit for MSNBC.com. Newsvine will report directly to the Publisher/President of MSNBC.com.

Neither of the companies would disclose terms of the all-cash transaction, but deals for other social media sites have ranged as high as the $75 million that eBay was reported to have spent for StumbleUpon.com, which claims about 3 times the number of users as Newsvine.

It appears as Newsvine will move to the server farms of MSNBC.com to allow for greater reliability and expansion.

Reach

Back in July 2007 the stat numbers were reported by the founder Mike Davidson, to be in about 1.2 million unique visitors per month and Newsvine has grown at an average rate of 46% per quarter. Newsvine community members view an average of 21 pages per day and spend an average of 143 minutes per month on the site. The site gets about 80,000 comments a month and 250,000 votes a month.

Where the site stands at today?

Quantcast is reporting for slightly over 260,000 unique visitors per month but Newsvine is not quantified there. Compete on the other side is reporting for 409,000 unique visitors.  Both sites are reporting on only the American traffic.

In details about Newsvine

Newsvine is a website consisting of community-driven news stories and opinions. Users write articles and save links to external content, vote, comment and chat on article pages created by both users and by professional journalists.

Seattle-based “Newsvine, Inc.” was incorporated in March of 2005 by Calvin Tang. Mike Davidson, Lance Anderson and Mark Budos subsequently left The Walt Disney Internet Group and together began development of Newsvine during the summer of 2005, as the four co-founders of the company. Josh Yockey joined the company shortly after development began, with Tom Laramee following in the spring of 2006. Eric Glomstad joined as an intern over the summer of 2006 and has stayed on with the company since. The development team consists of several veterans from the Disney Internet Group and ESPN. Mike Davidson, CEO of Newsvine Inc. was interviewed in episode 8 of Leo Laporte and Amber MacArthur’s weekly Inside the Net podcast.

Community

Newsvine is a community-driven news site similar to sites such as Slashdot, reddit and Digg. It combines user submission of information with items from the Associated Press and provides each user with a blog-style “column” for writing their own ‘posts’.
Features
 
Seeding
Newsvine allows users to “seed,” or post links for others to view. Seeds usually contain a short description or direct quotation from the linked article. With the “Newsvine Button,” users can select “Seed Newsvine” from their bookmarks and a seeding dialog will appear. Seeds allow for all of the same options as articles except the ability to insert photographs.

Articles
One of the most defining features of Newsvine is the ability for users to write their own articles. Commonly known as citizen journalism, this allows for users to express their opinions for public disccusion or even report in a journalistic manner. The most popular articles for top tags appear in the “Featured Writers” section, where article writers can receive extra publicity.

While writing articles, users are also given the ability to upload their own photographs or choose from a list of Flickr photos registered under a Creative Commons license for addition to the post. Captions can be written as well to clarify the meaning of the photograph.

Voting
Another common feature among social bookmarking websites is the ability to vote for content. Users who enjoy reading an article/seed or agree with its content are encouraged to vote for the content. Articles and seeds with the most votes appear in the “Top Wire,” “Top Seeds,” or “Top of the Vine” sections of the site.

Newsvine also allows for users to vote for comments that they enjoyed reading. This aspect of commenting encourages better content and friendly discussions. When a comment receives at least five votes, a green star is placed in the upper right-hand corner, signifying that many users enjoyed or agreed with the comment. Clicking the star will lead viewers to the next highly rated comment.

Negative votes are also registered, and a comment that receives too many negative votes will often be collapsed, so that it can only be viewed by deliberately opening it. This limits discussion under that comment, since new comments under it will not be seen automatically.

Commenting
The ability to comment on seeds and articles allows for extra discussions regarding the content to take place. While debates are welcome, useless, insulting, and self-promoting comments are not. If a comment receives enough reports, that comment will be collapsed and its contents can only be shown by choosing to expand it. The Newsvine comment system also allows for threaded comments, easing the confusion of comment direction. While users do not yet have the ability to edit or delete their own comments, writers are allowed to delete comments on their own content. Unregistered users are also allowed to have their say, but comments by unregistered users are not made public until that user creates a registered account.

User Columns
Newsvine user columns give users the ability to manage and share their articles, seeds, friends, recommendations, and other statistical information. Every user has one, and each is given their own subdomain to access it (<user>.newsvine.com). User columns are customizable: aspects of the layouts can be moved or hidden, a user photo and biography can be added, a header (such as a welcome message) can be added, friends can be invited to Newsvine or added to your friends list, recommendations (such as favorite books, bands, blogs, etc.) can be shown, and comments and feedback from other users can be managed. Also, through user columns, members have the ability to add others to their watchlist and friend list or to send another a chat invitation.

Earnings
Newsvine tells users that they will receive 90% of ad revenue from ads on their personal Newsvine pages. These earnings are “based on traffic to your articles and seeds,” but it is unclear exactly how Newsvine calculate earnings. The remaining 10% go to whoever referred the user to Newsvine, or for site maintenance if there was no referrer. Newsvine does not publish the amount of revenue that has so far gone to users.

Chat Lobby
The Chat Lobby is a section of Newsvine that manages the various chat rooms available or open. Every article or seed on Newsvine has the ability to have a chat room created for it, where users can discuss the subject matter real-time rather than posting a comment. While this feature is not often used, the capability is there for those users that want to participate in a discussion.

Watchlist
If a user finds a particular writer or tag that he/she enjoys to read content from, it can be added to the Watchlist. Watchlists are lists of members and tags that a user can compile to easily find interesting news. Items on a user’s watchlist appear on the left column and, if there is content that the user has not read by a watchlisted author or tag, a number will appear next to the item name signifying how many articles or seeds have not been read.

Conversation Tracker
Much like the Watchlist, the Conversation Tracker allows users to track other members. However, the Conversation Tracker is a notifier of new comments. There are three sections to the Conversation Tracker: new comments from a user’s Newsvine column, new comments from articles that a user has commented on, and new comments from an article a user’s friend has commented on. If a user has added members to the friend list that share a common interest in content, the Conversation Tracker can act as a list of recommended articles.

Friends List
The Friends List gives users the ability to meet new people and find others with common interests, but there are no requirements in doing so. Creating a populated friends list gives users the ability to find interesting new articles through the Conversation Tracker. Once a user adds a friend to the list, the added friend receives a notification and is given the ability to accept or decline the offer.

Vineacity

Vineacity is a measure of six different elements that contribute to a Newsvine user’s overall rating as a positive influence to the Newsvine community. Earned as ‘branches’ on a Newsvine logo icon displayed next to the user’s name, the six areas of excellence include:

  • Courtesy – Earned when a user’s positive feedback outweighs any abuse reports they may have received.
  • Longevity – Earned when the users has been active for at least two months after registering.
  • Fruitfulness – Earned when the user has submitted a substantial amount of content or comments that have received votes.
  • Connectedness – Earned when the user appears on a substantial number of watch-lists and/or friend-lists.
  • Random Act of Vineness – Earned for an exceptional moment of greatness on Newsvine.
  • Lifetime achievement – Earned when a user has received a combined number of votes on all articles, links and comments around Newsvine.

 Newsvine is known to have had only 6 employees at the time the deal was announced.

About MSNBC

MSNBC.com is a privately run news organization started by Microsoft and NBC in 1996. The site is one of the most decorated, highly trafficked news sites on the web, serving more than 29 million unique visitors per month. Contrary to popular belief, msnbc.com is run independently from both Microsoft and NBC and even the MSNBC news channel. It is its own organization, headquartered in Redmond, and has been growing and profitable for several years now. MSNBC.com employs about 200 people.

More

http://www.newsvine.com/
http://www.newsvine.com/_cms/info/companyinfo
http://www.msnbc.msn.com/id/21138371
http://blog.newsvine.com/
http://blog.newsvine.com/_news/2007/10/07/1008889-msnbccom-acquires-newsvine
http://www.readwriteweb.com/archives/newsvine_acquired_by_msnbc.php
http://www.readwriteweb.com/archives/the_state_of_citizen_journalism_pt1_newsvine.php
http://www.centernetworks.com/future-of-web-apps-mike-davidson
http://www.centernetworks.com/newsvine-acquired-msnbc
http://en.wikipedia.org/wiki/Newsvine
http://www.calvintang.com/blog/
http://www.techcrunch.com/2007/10/07/breaking-newsvine-acquired-by-msnbccom/
http://www.mikeindustries.com/blog/archive/2007/10/msnbc.com-acquires-newsvine
http://www.fimoculous.com/archive/post-3267.cfm
http://tang.newsvine.com/_news/2007/10/07/1008988-the-future-of-newsvine-and-what-it-means-to-you
http://www.quantcast.com/newsvine.com
http://siteanalytics.compete.com/newsvine.com/?metric=uv
http://www.zoominfo.com/Search/CompanyDetail.aspx?CompanyID=98714299&cs=QHF4kK7Uk&pc=compete

Naspers Acquired Polish based IM Company Gadu Gadu (chit-chat)

South Africa’s biggest media group Naspers Ltd offered to buy all outstanding shares in Polish Internet firm Gadu Gadu S.A. (GADU.WA), a Polish IM service, for 23.50 zlotys ($8.77) per share. The current majority shareholder of Gadu Gadu has agreed to tender its 55% shareholding in the public tender offer. In order to gain 100% acceptance of this tender offer the total investment will amount to around $155 million. Gadu Gadu (GG) is listed on the Warsaw stock exchange (Poland), and Naspers will launch a public offer to buy the shares. As a side note Poland became a European Union member in early 2004.  Poland is the EU’s fifth most populous country with 38 million inhabitants, exhibiting fast growth in the penetration of broadband connectivity, usage of the internet and online internet advertising.

Gadu Gadu is one of Poland’s largest instant messaging companies, with millions of unique users, mainly in Poland, and a 43% share of the Polish market. It also has a social network mojageneracja, which has just under million uniques. Gadu Gadu is one of the many entrants for the instant messaging market. Should Naspers get this public tender offer, it will be adding to its global reach, especially in Europe, where it’s somewhat less influential than some of the other countries it has a presence in.

Gadu-Gadu stands for “chit-chat” in Polish and is commonly known as GG or gg and is a Polish instant messaging client.

Gadu-Gadu runs under Windows 98/2000/Me/XP/2003/Vista and is operating under the license of adware. Gadu-Gadu makes money by displaying advertisements. Just like with ICQ, users are identified by their serial numbers. There are numerous add-ons available to provide extra features. The official version provides over 150 smiley icons, and allows off-line messages, data dispatch, and VoIP. Since version 6.0, an experimental SSL secure connection mode can be used.

One of the most popular features of Gadu-Gadu is the status option, allowing users to display short text messages visible under their buddy icons on other users’ contact lists. Gadu-Gadu uses its own proprietary protocol. Many unofficial plug-ins have been created to expand its capabilities. Even though Gadu-Gadu service provider officially forbids to access the network with 3rd party applications (changes in use Terms and Conditions introduced in 2006), several other instant messengers have the ability to communicate with GG protocol such as:

  • Kadu, an open-source instant messenger similar to Gadu-Gadu (Linux/Macintosh)
  • Tlen.pl, a Polish instant messenger (Windows)
  • Miranda IM (Windows)
  • Adium (Macintosh)
  • Proteus (Macintosh)
  • Pidgin / Finch (multi-platform)
  • Kopete (multi-platform)
  • AmiGG (AmigaOS and MorphOS)
  • EKG (Linux/Macintosh) console client
  • GNU Gadu (Linux/Macintosh)

Gadu-Gadu is the most popular IM in Poland. There are over 7.8 million registered accounts, and every day approximately 6.5 million users are online.

Many users consider the latest version too overloaded by unnecessary addons (Gadu-Gadu Radio Station etc.), so the older versions (especially 6.1 build 158) are still as popular as the new one. However, the new version is generally regarded as being much more stable.

Gadu Gadu S.A. was established in 2000.

About Naspers

Naspers is a multinational media company with principal operations in electronic media (including pay-television, internet and instant-messaging subscriber platforms and the provision of related technologies) and print media (including the publishing, distribution and printing of magazines, newspapers and books, and the provision of private education services). Naspers’ most significant operations are located in South Africa, where it generates approximately 76.4% of its revenues, with other operations located elsewhere in Sub-Saharan Africa, Greece, Cyprus, the Netherlands, the United States, Thailand and China. Naspers creates media content, builds brand names around it, and manages the platforms distributing the content. Naspers delivers its content in a variety of forms and through a variety of channels, including television platforms, internet services, newspapers, magazines and books. Many of Naspers’ businesses hold leading market positions, and Naspers capitalises on these strong positions when expanding into new markets.

As a side note early this year Naspers announced voluntary delisting from NASDAQ and instead Naspers Limited Received Listing Approval for London Stock Exchange. Naspers is listed on the stock exchange in Johannesburg and up to date stock quote can be found over here: http://stocks.us.reuters.com/stocks/overview.asp?symbol=NPNJn.J

With the current acquisition Naspers is hoping to expand its instant messaging services beyond what it already owns in the sector. Naspers operates local IM/online services in Russia (Mail.ru), China (Tencent) and Thailand (M-Web/Sanook).

The company is headquartered in Cape Town, RSA. 

More

http://www.gadu-gadu.pl/
http://www.naspers.co.za/pdfs/press_04_october_2007.pdf
http://www.paidcontent.org/entry/419-south-africas-naspers-offers-to-buy-polish-im-service-gadu-gadu-for-155/
http://mashable.com/2007/10/04/naspers-gadu-gadu/
http://www.naspers.com/English/home.asp
http://www.reuters.com/article/mergersNews/idUSWEB835920071004
http://en.wikipedia.org/wiki/Gadu-Gadu
http://finance.paidcontent.org/paidcontent?GUID=3379356&Page=MediaViewer&Ticker=NPSN
http://stocks.us.reuters.com/stocks/overview.asp?symbol=GADU.WA

Small round for Mesmo.tv

The social video bookmarking and recommending service Mesmo.TV and provider of a very popular Facebook application, has secured over half of a $900,000 round of Series A financing.

Mesmo.TV’s Davin Miyoshi informed the public that Aydin Senkut’s Felicis Ventures, Mike Maples’ Maples Investments, Naval Ravikant’s The Hit Forge, and Georges Harik participated in the round. Simply put their tool allows users to rate and tag the videos that they enjoy. Mesmo.TV is then recommending videos to you and introduces you to other viewers with similar viewing habits and interests.

This tool, however, has not turned out to be the most successful part of Mesmo.TV’s business. The company’s TV Show Trivia  Facebook application, which launched in August, has garnered over 1.3 million users and over 125,000 daily unique visitors. This puts the application amongst the top 45 applications on Facebook, and made Mesmo.TV the largest TV show community on that social network.

Mesmo.TV plans to continue focusing on its social network efforts and looks forward to expanding to other networks, such as MySpace, who might open up in the near future. The company is also talking with TV networks to bring online videos to its users.
About Mesmo TV

“Mesmo TV” (formerly called TV Show Trivia) is the largest social TV application and community on the Facebook Platform. On Mesmo TV you can play TV trivia, discuss your favorite shows and share your favorite characters and quotes with your facebook friends. MesmoTV is building highly engaging, fun, social TV applications that that allow you to engage with your friends and favorite shows.

Mesmo.TV has been funded by a group of talented and successful entrepreneurs and some of the key people are listed below.

Davin Miyoshi Co-founder/CEO 
Jesse Hull Co-founder/CTO 
Debarshi Kar Co-founder/VP of Engineering 
Daphne Carmeli Board Member 
Auren Hoffman Board Member 
Cindy McCaffrey Board Member 
Munjal Shah Board Member 
Ben T. Smith, IV Board Member 
Aydin Senkut Investor 
Mike Maples Investor 
Naval Ravikant Investor 
Georges Harik Investor 

More

http://www.mesmo.tv/
http://blog.mesmo.tv/2007/05/about-us.html
http://apps.facebook.com/tvtrivia/?entrySource=mesmohomepage
http://apps.bebo.com/mesmotv/?entrySource=mesmohomepage
http://apps.facebook.com/tvtrivia/
http://www.crunchbase.com/company/mesmo.tv
http://www.techcrunch.com/2007/10/04/social-video-company-mesmotv-raises-900000-of-series-a-funding/
http://www.pehub.com/article/articledetail.php?articlepostid=8047
http://www.techcrunch.com/2007/07/17/mesmotv-discovers-videos-you-like/

Digg guys are up for sale again, quietly

The situation around Digg is heating up, but not because there are many potential buyers bidding for the company, but it seems the rumors are all around us telling stories where Digg is in desperation to sell out. It has happened before; it happens today again, the only difference is the price tag. Digg is again getting serious about a sale and has hired Allen & Company to shop the site for what rumors claim to be anything in the $300 million range.

Investment bank Allen & Company has been involved in a number of high profile mergers and acquisitions in the past. Interesting for the Allen & Company is the privacy the investment firm seems to be working in as argument for which is the absence of even a basic site for the company on Web. Perhaps they don’t like publicity. Yet, we have found the firm’s contact details, which can be found among the other links on the end of the story’s page.

For Allen & Company, there’s no business like financing show business. The investment bank serves variously as investor, underwriter, and broker to some of the biggest names in entertainment, technology, and information. Viewed as something of a secret society, the firm has had a quiet hand in such hookups as Seagram (now part of Vivendi) and Universal Studios, Hasbro and Galoob Toys, and Disney and Capital Cities/ABC. The firm’s famous annual retreat in Sun Valley, Idaho, attracts more moguls than a double-black ski run (Warren Buffet, Bill Gates, and eBay CEO Meg Whitman have attended). Brothers Herbert and Charles Allen founded the company in 1922.

Key people and executives for Allen & Company LLC are as follows:

  • Non-Executive Chairman Donald R. (Don) Keough
  • President, CEO, and Director Herbert A. (Herb) Allen
  • Managing Director and CFO Kim M. Wieland

The obvious question is will Digg sell with a $300 million valuation given that it has been on the market (quietly) for months, even year or two, with no serious interest to date?

According to Quantcast, which we believe is very accurate, Digg.com is hugely popular site and is reaching morethan 22 million unique visitors per month.

Here we go again with lots of speculations for one of the top and most popular web 2.0 websites: digg.com. In our understanding there must be something wrong with either Digg, its business/revenue model or the momentum is simply lost, or something else.

Here are our thoughts on why Digg.com did not get sold so far:

  1. Not profitable enough towards their claims of having 22M visitors a month; in other words too many visitors, too much popularity that seem hard to be monetized.
  2. Digg.com is Slashdot.org 2.0., how much did Slashdot.org go for? As far as we remember it was bought for $20M something.
  3. Their technology and concept is not distinctive and definitely not defendable. There are too many followers and competitors, including Netscape.com (now Propeller.com). Digg set the standard but it seems too many old media companies are building up the same technologies within their web properties which will additionally undermine Digg.com’s popularity.
  4. Digg.com was and still is widely criticized for being corrupted in getting manipulatively different news stories promoted to the home page by a handful savvy Digg.com users.
  5. Geeks are not clicking on ads, as what many people say, so the advertising model seems highly unlikely to be the panacea for Digg.com.
  6. In the past Digg.com and News Corp negotiations have failed for one reason or another, which might have negative impact towards other potential acquirers.
  7. Digg is in one way or another under the control of its top users like Dmoz.org and Wikpiedia. What helped those sites grow to such popularity levels is what seems to be their setback. The new owner has to deal with this issue and it is not a small one.
  8. Top Digg users are often requested to help stories get the home page, sometimes in return for cash payments.
  9. Digg has issues with spam, scam and gaming of their system.
  10. When you have a system that works like Digg, of course there will always be people wanting to organize and promote stories that they like or have interest in. You can’t expect people to vote as an individual, they have friends, they have jobs, and they are involved in communities. Digg should have focused into the tech news at first and stay there. Now Digg is becoming mainstream with inaccurate, sensationalist, boring news mostly recompiled by bloggers from other news. As some people say: the front page posts are recycled news of web, nothing new there. Unless you want to see articles about Digg or the newest Free collection of fonts, the stories are crap. The only stories and news that make it to the home page appears to be the ones submitted by the top users.
  11. Digg is a great idea which has grown faster than its creators’ ability to administer it. In a perfect world, they’d be ahead of these sort of problems, rather than playing catch-up trying to fix scenario after it’s proven to be broken. I suppose broken is a bit harsh actually, but the site is definitely being gamed with Rose et al trying their hardest to implement some rules/policies that will keep it together without destroying the essence of what the site is all about.
  12. Being forerunners in this sort of self-run community, they get to sort out all the pain for those similar sites that will follow later and improve on the idea. Slashdot lead the way for a long while in this regard, and Digg.com came along and improved on the model without having to figure out a lot of the issues Slashdot had already been through. Now Digg is leading the way and having to wade through the mire themselves.
  13. We think that Digg is great success, and with the success all the issues come along, but it takes on old media outlets, which puts fire under their feet and unless they figure this out and find their niche, they are under the risk to have their concept and popular site ruined.
  14. Most users are around and gone after few months, short-term loyalty with revolving door.
  15. Mob mentality crowd which creates abusive comment section.

Despite anything said above, Digg.com, in our view, does cost more than $300M at the very current moment, with or without steady revenues, simply because of its popularity, leadership, reach and target audience. 22 Million unique visitors per month is almost a mainstream site and we have seen sites with less that traffic getting acquired in the 10 digit range.

Yet we cannot get rid from the feeling there must be something wrong that the general public is not aware of, which might be the key reason behind the decision of so many suitors so far to have backed off.

More

http://digg.com/
http://www.techcrunch.com/2007/12/17/for-sale-used-social-voting-site-asking-price-300-million-goes-by-the-name-of-digg/
http://www.hoovers.com/allen-&-company/–ID__51026–/free-co-factsheet.xhtml
http://www.techcrunch.com/2006/12/28/no-acquisition-for-digg-raise-series-b-round-instead/
http://www.techcrunch.com/2007/11/07/just-sell-digg-already-jay/
http://nextnetnews.blogspot.com/2006/12/why-nobody-buys-diggcom.html
http://venturebeat.com/2007/12/17/source-digg-hires-bank-hoping-to-sell-for-300-million-or-more/
http://nextnetnews.blogspot.com/2007/02/diggcom-fights-spam-scam-games.html
http://www.quantcast.com/digg.com
http://www.pronetadvertising.com/articles/latest-digg-payola-exposed.html
http://valleywag.com/tech/rumormonger/digg-close-to-a-300-million-sale-320145.php
http://valleywag.com/tech/sun-valley/whos-selling-whos-buying-at-the-allen-confab-276716.php
http://money.cnn.com/magazines/fortune/fortune_archive/2004/06/28/374371/index.htm

Sequoia Funding for Search Engine Marketing (SEM) Firm Kenshoo

Kenshoo, a search engine marketing firm, has received an undisclosed amount of funding from Sequoia Capital. The end-to-end search marketing solution aimed at advertisers and ad agencies operates on an automated technology for advertising campaigns, and a core feature of the company’s suite of offerings relies on the longtail keyword expansion. It is an exclusive search formula using patented multilingual keyword expansion, automatically identifies thousands of related keywords from real user search terms with no need for manpower and hours of effort. Updates are provided on a constant basis on the campaign ensuring updated information on the exact keywords.

The basic idea behind their concept is to minimize the amount of man power needed to run a successful and informed advertising campaign online. Running an AdWords or related CPC text ad campaign is a time consuming and hard science process

Those advertisers that are savvy into it run up against the mind numbing tasks to entering data over and over again so they can run side-by-sides and constantly improve their dollar efficiency, and changes based on one cent’s move in either direction can sometimes mean the difference between a profitable ad campaign and one that ends up losing tons of money.

So it seems there is a growing need for automated tools in regards to online advertising and marketing, especially with the growing number of ways in which campaigns can be distributed across the web.

Their flagship product is called KENSHOO SEARCH(tm) and provides automated management for campaigns across multiple search engine platforms such as Google, Yahoo and MSN.

KENSHOO SEARCH(tm) is an end-to-end SEM platform, which automates the process of building and optimizing cross channel search campaigns.

Quality Management with KENSHOO SEARCH

Quality Management is a unique approach which automates all aspects of Search campaigns. Bid management is not enough anymore! In today’s search engines arena, creating a successful SEM campaign consists of a wide array of elements;

  • Selecting relevant keywords
  • Updating deep links URL’s
  • Creating effective ads
  • Providing and constantly updating bids
  • Monitoring the traffic
  • Structuring cross platform campaigns
  • Reporting and analyzing data on-time

Long-tail keyword expansion

Kenshoo’s exclusive search formula guarantees every search engine marketing campaign a long tail. By using patented multilingual keyword expansion, KENSHOO SEARCH(tm) automatically identifies thousands of related keywords from real user search terms- with no need for manpower and hours of effort.

Dynamic Sites

Website content perpetually shifts as new and improved products reach the cyber-shelves. The need for updating multiple campaigns is vital in order to keep up with this ever-changing environment. With the unique ability to automatically update itself as web content changes, KENSHOO SEARCH(tm) enables the client high ROI SEM campaigns. By staying in tune with this constantly changing environment, KENSHOO SEARCH(tm) seamlessly index a site and upload the exact model/brands or other keywords and data together with the deep link URL to the search engines. This enables the upload of the merchant’s products onto the Search engines as well as updating it as the site changes. The added bonus is the low cost per click, high CTR, high conversion rates and maximized ROI that result from the highly relevant landing page.

Intelligent Bid Management

Featuring an easy-to-use and configurable Bid Management solution, KENSHOO SEARCH ™ allows your bids to be flexible, applying its’ logic to all major search engines, it even allows you to create your own bid policy. Whether your products require maximum exposure or a positive ROI on any level, KENSHOO SEARCH(tm) follows campaign behavior in real time, detecting changes and reacting to the competition, insuring high ROI on your SEM campaigns.

Click Fraud

KENSHOO SEARCH(tm) offers the invaluable asset of identifying click fraud in real time. With the ability to manage multiple campaigns all at once, KENSHOO SEARCH(tm) reports the detection of Click Fraud immediately, protecting advertisers from over clicking, and allowing clients to obtain a refund. In addition, KENSHOO SEARCH(tm) has ability to pause campaigns when sites malfunction.

Quality Reporting

Stay on track with comprehensive reporting of your campaigns. KENSHOO SEARCH(tm) understands the importance when it comes to reporting. With Kenshoo search, in-depth reports are created that analyze traffic from different networks, displaying click distribution and ROI geographically, daily, and hourly, to take your campaigns to the highest level of success.

Kenshoo’s service enables advertisers and agencies to reach high volumes and optimize campaigns.

To utilize their services you simply give them your URL, and a designated account manager will assist you wit the process. They work hard to understand your targets and goals, analyze your website, assess your campaign, and optimize it to suit your individual needs.

The company is based in Israel. In August 2007, Kenshoo began applying its search engine marketing analytics on behalf of its first large client, AOL-owned IM company ICQ, also based in Israel. It also works with agencies such as McCann-Erickson and AlthogetherDigital. A representative for the company said one-year-old Kenshoo is focused on bringing its business to the UK sometime early next year. Once it’s up and running in Europe, Kenshoo then plans to build a U.S. presence.

Yoav Izhar-Prato, CEO and co-founder of Kenshoo adds, “We are thrilled to be joining forces with Sequoia, a partner with an unsurpassed track record of successful Internet investments such as Yahoo!, Google, Apple, PayPal and YouTube. Kenshoo is determined to be the leading provider of innovative Search Marketing solutions; harnessing our in-depth knowledge of the industry, our clients’ constructive feedback, technological strengths and continuous innovation- I believe we are well positioned to do so.”

Sequoia Capital is the Google backer and it is coming as no surprise they are funding a company that is helping in particular users and customers that are spending their ad money on Google.

Although Moritz sat on the evaluating committee, he is not the investing partner from Sequoia. Yuval Baharav, a partner in Sequoia’s Israeli office, is the one who invested and will take a board seat. This is Kenshoo’s first venture round. Terms were not disclosed, although one report in an Israeli paper puts it at a few million dollars. Previously, the startup raised about one million dollars from angel investors, and has been funding itself from operations.

More about Sequoia Capital

Since 1972, Sequoia Capital has provided startup venture capital for very smart people who want to turn ideas into companies. As the “Entrepreneurs Behind the Entrepreneurs,” Sequoia Capital’s Partners have worked with innovators such as Sandy Lerner and Len Bozack of Cisco Systems, Jerry Yang and David Filo of Yahoo!, Gaurav Garg of Redback Networks, Larry Page and Sergey Brin of Google, Dan Warmenhoven of Network Appliance, T.J. Rodgers of Cypress Semiconductor, Lou Tomasetta of Vitesse Semiconductor, Steve Jobs of Apple Computer and Larry Ellison of Oracle. The companies organized by Sequoia Capital now account for about 12% of the value of NASDAQ.

More about Kenshoo Ltd

Kenshoo is a provider of end-to-end search marketing automated technology for advertisers and agencies worldwide.

The company’s flagship product KENSHOO SEARCH(tm) provides automated Quality Management for cross- platform search campaigns. Kenshoo’s unique technology and approach enables advertisers and agencies worldwide to reach high volumes, optimize campaigns and to boost ROI.

Kenshoo is an innovator in Search Engine Marketing with extensive industry knowledge and a dynamic approach. Kenshoo’s strength is in developing SEM technology to increase ROI on search campaigns.

Kenshoo’s flagship product, KENSHOO SEARCH(tm) is an end-to-end SEM platform, which automates the process of building and optimizing cross channel search campaigns. KENSHOO SEARCH?utilizes Quality Management, the company’s unique approach to search marketing that automates much of the labor intensive search marketing operations.

As a Google Qualified Company, a Yahoo! Ambassador and Microsoft adExcellence, Kenshoo provides its licensed SEM platform and services to publishers, agencies, blue-chip advertisers, and affiliate marketers world wide.

Management Team

Yoav Izhar-Prato, CEO & Co-Founder- As a founder of several start-ups around the globe and former manager of ECI Thailand, Mr. Izhar-Prato brings over ten years of business management to Kenshoo. Mr. Izhar-Prato carries an Executive B.A., Business management from Ruppin College.

Alon Sheafer, VP Marketing & Co-Founder- Mr. Sheafer brings over ten years of internet experience to Kenshoo. Alon has a strong Technological background combined with sales and marketing experience. Formerly founder and CEO of Bazman, a price comparison website. Mr. Sheafer holds a B.Sc in Computer Science from the Academic College of Tel-Aviv Jaffa.

Nir Cohen, CTO & CO-Founder- As former founder and CTO of Bazman, a price comparison website, Mr. Cohen carries years of experience in leading design and development teams for companies such as Demantra and Imperva. Mr. Cohen holds a B.Sc in Physics & Computer science from Ben Gurion University, Israel.

Andrey Shirben, Head of Campaigns- A former VP in marketing with Storewiz Ltd, Mr. Shirben brings a history of technology experience to Kenshoo. As Head of Campaigns, Mr. Shirben’s background lies in business management and computer science with a BA in Management & Computer science from Open University in Israel.

Udi Broyer, CFO & COO- Mr. Broyer brings over ten years of Financial and operational experience to Kenshoo. Mr. Broyer previously served as the Director of Finance of Metacafe a leading UGC Video web site. He held various executive financial positions such as financial consultants for JVP a Venture Capital firm and VP of Finance at Fundtech. Mr. Broyer is a CPA and served as a Senior Audit Manager in the high-tech group at “Ernst & Young” Israel. Mr. Broyer holds a B.A in Accounting and Economics at the Hebrew University in Jerusalem, Israel.

The market

SEM (Search Engine Marketing) is the younger brother of SEO (Search Engine Optimization). In general who fails to perform well on the SEO scene is forced later to rely on the SEM. SEO promises organic results and traffic while SEM does that for paid campaigns. On the other hand we think there are thousands of large-scale corporations and millions of small ones that have little to no ideas on how to develop white-hat SEO practices for their web based businesses and are in one way or another going to rely and depend on SEM and companies like Kenshoo for instance.

Otherwise the SEM market is very crowded and the environment is extremely competitive; there are literally thousands of small and mid-level SEM firms in the sector, yet having Sequoia on your side might be one step in the right direction for Kenshoo. I remember one firm in particular called Fathom Online. Fathom Online received $6 million in financing in its first round of venture funding a few years ago. The financing came from Constellation Ventures and private investors. As part of the funding, Constellation managing directors Virginia Turezyn and Dennis Miller have joined Fathom’s board of directors by that time. What we know Former Ask Jeeves executives Chris Churchill and Chris Raniere founded the San Francisco-based search engine marekting firm in 2002. Fathom also helps clients design and run paid search campaigns as clients include Hilton, Covad and Microsoft..

More

[ http://www.kenshoo.com/ ]
[ http://www.kenshoo.com/blog.asp ]
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Sportingo has raised $3.2 in funding, moves to London

Sportingo, a sports fan portal and blogging community, has raised $3.2 million in funding from London-based Ingenious Media. 

Launched early this year in Israel, Sportingo is a site where users can write their own match reviews and commentary, and discuss others’ content. With the type of content that’s created on Sportingo, this is very much a blogging community for users to contribute to the larger discussion around different sports. A wide range of sports is covered on Sportingo, from cycling to swimming, cricket and rugby to soccer and beyond.

Sportingo is known to have already acquired a UK soccer blog, CaughtOffside, in June. The site has since opened an office in London. This deal could be classified as employment through acquisition this way effectively hiring the CaughtOffside’s author Chris Toy as chief editor.

The founder of the company is the Israeli Ze’ev Rozov who has recently moved from Israel to London, UK.

About Sportingo

Sportingo is all about sport. Whether we follow football, cricket, rugby, tennis, golf, cycling, darts or tiddly winks, as fans, the main thing that we all share, is a passion for our sport. This passion has led to many late nights, arguments over pints of beer and cups of tea and neglect of partners and friends, whilst we debate the greatest sporting moments of all time, the top football players and their monetary worth, the virtues of one day international cricket matches and the need to retain the tradition of Rugby Union and Rugby League as 2 different games.

Sportingo is about fans sharing their opinions with the sports community. All fans are invited to register and write articles about any sport related event ranging from match reviews and team performances to nostalgia articles about memorable moments in sport.

Sportingo is about fans writing for fans; fans commenting and ranking the articles of other fans; fans deciding what are the topical and important stories of the day, fans setting the sport agenda.

Sportingo recently acquired the award winning football blog CaughtOffside. CaughtOffside was founded in 2006 and quickly became a leading football blog in the UK and across the world. The site focuses primarily on English football clubs and has developed a strong culture and reputation amongst the online football community.

Sportingo exists for the fans and because of the fans. As fans you are part of the website’s success. We welcome you and look forward to your contributions.

About Ingenious

Ingenious is an independent and integrated group of companies advising and investing solely in media, thereby providing a unique service to clients and investors.

Founded in 1998 by Patrick McKenna, Ingenious is one of the leading investors in the UK’s creative industries.

Our collective knowledge and experience has positioned us as the market leader in media investment and strategy and through our extensive network of relationships we are able to provide an unrivalled service to our clients.

We have the necessary depth of professional experience and expertise to provide both a high level of advisory services and investment to companies operating in the film, television, music, games and publishing sectors.

Our independence and impartiality allow us to work with a broad spectrum of other advisers, companies and financial institutions. We understand the needs of both the media sector and the investment community, thereby enabling us to work easily with both.

Alongside our private equity investments and project financing capability, we offer a range of media consultancy and corporate finance services and, through our asset management division, provide innovative solutions to the private investor.

More

[ http://www.sportingo.com/ ]
[ http://mashable.com/2007/10/02/sportingo-funded/ ]
[ http://www.paidcontent.org/entry/419-sports-fan-portal-sportingo-wins-65-funding-for-marketing-and-developme/ ]
[ http://www.ingeniousmedia.co.uk/flash.htm ]
[ http://www.sportingo.com/about_us/1001,4 ]
[ http://www.paidcontent.co.uk/entry/419-sports-fan-portal-sportingo-wins-32-funding-for-marketing-and-developme/ ]
[ http://sportingoblog.blogspot.com/2007/10/new-round-of-funding.html ]
[ http://sportingoblog.blogspot.com/2007/09/move-to-london.html ]