AFI BLOG: Media and Technology

Advertising Age

Co-Founder Battelle: Ready to Take on the Big Boys

Federated Media wants to be viewed up there with the web’s big boys — and it’s got a fresh $50 million in funding to back that up, said John Battelle, CEO and co-founder.

Confirming weeks of speculation over whether it was being sold or just raising another round of financing, Mr. Battelle’s Federated Media Publishing has announced a $50 million minority investment from Oak Investment Partners.

Insurance against recession
“We’re ready to stand up to any big brand online,” Mr. Battelle said. “Unlike some of the new internet start-ups that [marketers] can dabble around with, we’re going to be around for the long term. … We’ve got the resources to make it happen.”

That might sound like braggadocio, but $50 million is a large sum for any internet start-up at any time, but it represents a particularly significant vote of confidence now as the economy slides into a downturn. It gives the company insurance against any potential recession, Mr. Battelle said, although that’s not reason No. 1 for raising the money. The company became profitable in the third quarter of 2007, according to the announcement of this latest round.

While Mr. Battelle wouldn’t come close to commenting on how this round values his company, but PEHub suggests it’s about $200 million.

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