GigaOM Acquires paidContent From Guardian
Back in November I wrote about how Guardian Media Group was attempting to sell off paidContent. paidContent is a tech blog that is run by a company called contentNext. Guardian Media Group acquired contentNext in July 2008 for approximately $30 million including earn-outs. It was rumored that contentNext did not meet the earn-out requirements for the full price and Guardian did not know how to efficiently manage the brand. Today GigaOM has announced that they have acquired paidContent and the other contentNext properties for an undisclosed sum.
Tech blog network GigaOM has over $14 million in funding so they have the money to spend on acquisitions and talent. Currently GigaOM makes money from advertising, which they use for paying their writers. A representative from Guardian Media Group will be joining GigaOM on the board of directors as an observer as a result of the deal.
GigaOM founder Om Malik said that he acquired paidContent because the editorial team at the company Rafat Ali and Staci Kramer were two of his favorite writers in the early days of professional blogging. Rafat Ali is currently on the board of advisers at GigaOM, but he is focusing on other projects and is not involved in the day-to-day at contentNext. Staci will be joining GigaOM though.
Malik also said that contentNext will help GigaOM bolster their presence in New York and help increase their footprint in Europe. Guardian News & Media is becoming a shareholder in GigaOM as a result of the acquisition as well.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry