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Will Federated Media Pay $30 Million To Its Network Blogs and OpenX?

Files under: News
Posted by: Quintura @ 10:58 [4. 04. 08]

There are reports in the blogosphere (first, here) rumoring that Federated Media Publishing (FM) raised $50 million at a $200 million pre-money valuation. FM is essentially online media sales house that brokers display (banner) and other ads on some two hundred blogs and other sites. It is powered by an open source ad server software from OpenX (ex-OpenAds). It’s assumed by the bloggers reporting the rumor that FM would likely use cash proceeds from the deal to buy-out some of those blogs and/or garantee revenue in exchange for equity stakes in the blogs.

If FM kept on average 40% from ad sales on its network of blogs and sites, it would imply some 60% of a $250 post-money valuation of FM would be tied in its network of blogs and sites. To be fair to its blog and technology partners, FM could share some $30 million or 60% of $50 million deal proceeds with its network blogs and ad server solution provider OpenX.

I believe that the bloggers will welcome that pay-out for all the hard work they have done creating content.

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