Another Day, Another Advertising Acquisition. AOL Eyeing Quigo For $300 Million.
In September 2006, the month that Pulse 2.0 was created, I pointed out that New York-based Quigo was beefing up their client list and that in terms of advertising, the company would be able to compete with Google AdWords.Â Quigo Technologies is known for their AdSonar product.Â AdSonar provides contextual advertisements based on keywords from any given website, similar to Google AdSense.
Currently, Quigo provides services to ABC News, Hollywood.com, ESPN.com, Forbes.com, FOXNews.com, CareerBuilder.com, and USAToday.com.Â In June 2007, Time Inc. decided to choose AdSonar to power the advertising for their websites as well.Â Time Inc. is a subsidiary of Time Warner Company.Â Time Warner Company owns America Online.Â Technically, its a situation where the client wants to become the owner.
America Online is currently putting together a deal to acquire the advertising company for $300 million.Â Kara Swisher of AllThingsD broke the news.
Quigo raised a total of $45 million in funding from Steamboat Ventures, Highland Capital, Glenrock Ventures, IVP, and Meritech Capital Partners.Â Time Inc. executives predict that Quigo will bring in $100 million in revenues over the next 3 years.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry