BoomTown » Greycroft Partners

Here's the Official HuffPost $25 Million Funding Press Release

Kara Swisher — Mon, 01 Dec 2008 12:06:09 +0000

Here’s the official press release from the popular news and blogging site, The Huffington Post, which announced $25 million in funding from Oak Investment Partners this morning.

(BoomTown’s story on the funding is here, along with an interview with Oak’s Fred Harman)

Sources told BoomTown the investment gives the site–which had 4.5 million unique visitors in September, a quadrupling from a year ago–a valuation of “south of $100 million.”

Here’s the official release:

The Huffington Post Announces $25 Million In Funding From Oak Investment Partners

New York, NY (December 1, 2008)–The Huffington Post, a leading news and opinion site, today announced that it has secured $25 million in funding from Oak Investment Partners, a venture capital firm based in Palo Alto, California. The Huffington Post (”HuffPost”) will use the proceeds to invest in the growth of the company and for select and focused acquisitions. The company said it would invest in its technology and infrastructure, increase its in-house advertising capabilities, and continue to expand its content offerings–including a new investigative journalism initiative and a rollout of local versions of The Huffington Post in select cities. The announcement was made by Arianna Huffington and Kenneth Lerer, co-founders of The Huffington Post.

“This commitment from Oak Investment Partners will allow us to accelerate our growth, with more verticals, more video, more citizen journalism initiatives, more cities for our local editions, and a fund for investigative journalism,” said Arianna Huffington. “We are particularly excited to have Fred Harman of Oak join our board; his deep knowledge of the new media landscape will help us to take HuffPost to the next level.”

Said Kenneth Lerer: “We are thrilled to bring on board a partner like Oak to work with Softbank Capital and Greycroft [Partners] as we move forward. Since launching the site three and half years ago, the company has built a strong brand and an audience of millions who rely on the site for its mix of smart news and opinion. The additional capital from Oak will enable us to go full-steam ahead with operations and select acquisitions.”

Fred Harman, general partner at Oak Investment Partners, said, “Much of the news media business needs to be reassembled online around an ad-supported model and the timetable for this has been accelerated, not slowed, by this economic down cycle. We believe that The Huffington Post has built a platform and business model to be among the leaders in aggregating this audience online. Our financing will provide the resources necessary to scale the company, both organically as well as through acquisitions of additional talent and new media companies. We are also very excited to have the opportunity to back Arianna, Betsy, and the company’s strong entrepreneurial team.”

Betsy Morgan, CEO of The Huffington Post, said, “With funding from Oak, The Huffington Post is perfectly positioned to build on its incredible growth. Oak brings to the table a team with enormous experience and insight, and we look forward to working with them to seize the opportunities ahead of us.”

The Series C financing round comes as The Huffington Post continues to experience significant growth following the expansion of the site in 2007, when HuffPost began rolling out a variety of new sections, including entertainment, politics, media, living, style and green. The site also started its first local version, HuffPost Chicago. This year, The Huffington Post received widespread attention for its original reporting on the 2008 presidential race, including the coverage provided by its OffTheBus team of citizen journalists. HuffPost currently has 46 employees.

Harman joins The Huffington Post board of directors, whose members include: Eric Hippeau, Managing Partner of Softbank Capital, Arianna Huffington, Kenneth Lerer and Betsy Morgan.

Guardian Media Group Buys paidContent for $30 Million

Kara Swisher — Fri, 11 Jul 2008 08:14:16 +0000

In what will be seen as a new media coup, sources tell BoomTown that Britain’s Guardian Media Group is set to announce this morning that it will buy the company that runs the high-profile digital media news site paidContent for a price “north of $30 million.”

That price, though, includes an earn-out, sources said, which will depend on future performance of the company.

The paidContent site is owned by ContentNext and was founded by Publisher and Editor Rafat Ali in 2002.

With the motto,”The Economics of Content,” paidContent has been a pioneer in the online news space, doing high-quality reporting about online media and digital efforts by big media companies.

ContentNext has offices in Santa Monica, Calif., and Manhattan and operates several other sites, and also runs several conferences.

The company had reportedly been raising funding of several million dollars recently to fuel more expansion.

But ContentNext’s only financial backer so far has been Alan Patricof’s Greycroft Partners, which invested an undisclosed amount in 2006.

Longtime digital media exec Larry Kramer is on its board and ContentNext recently hired media exec Nathan Richardson as its CEO.

Sources said ContentNext would continue being run independently after the Guardian purchase.

This sale comes after the mid-May sale of Ars Technica, a much larger tech-focused site, to Condé Nast for a reported $25 million.

More to come soon.

But until then, here’s a video I did with Ali just over a year ago in a when I visited his then-new offices in Santa Monica.

[ See post to watch video ]

Kara Visits ContentNext's Rafat Ali

Kara Swisher — Mon, 25 Jun 2007 04:03:49 +0000

On a recent trip to Los Angeles, I went to visit Rafat Ali, the energetic founder of ContentNext Media Inc.

While publisher and editor Ali’s got two other sites, the flagship is paidContent.org, which covers the business of digital content with a fine-tooth comb.

Ali started the site in 2002 after stints at Silicon Alley Reporter and the ill-timed Inside.com. But his entrepreneurial effort has taken off and become one of the better sites for up-to-the-minute information about the online media business.

Just this weekend, for example, Ali broke the news that Wenda Harris Millard was out as Yahoo’s ad chief (though I did predict the move–an educated guess on my part–here last week), as well as posting stories about breaking news at Dow Jones, ABC and the $8 million in funding that Digg founders just got for their new online video show site, Revision3.

ContentNext got a small amount of funding last summer from Alan Patricof’s Greycroft Partners and recently added longtime online exec Larry Kramer to the board. The company now has 20 employees, including the tireless executive editor Staci Kramer. It makes its revenue via advertising and now also from conferences.

So here is a video I did on my recent visit to ContentNext’s Santa Monica, Calif., digs, which they moved into in March (most of the company’s offices had previously been at Ali’s various homes), along with some observations from Ali:

[ See post to watch video ]