Rumor: Federated Media Raising Second Round of Funding

Posted Mar 6, 2008

Federated Media Publishing, the advertising brokerage company founded by John Batelle is rumored to be raising another amount of funding.  The second round of funding is expected to be between $20-$30 million according to Stefanie Olsen, an editor at CNET.  The first round of funding was $4.5 million by JPMorgan Partners, the Omidyar Network, and The New York Times.  The Omidyar Network was founded by Pierre Omidyar, founder of eBay.

Federated Media also recently employed GCA Savvian Advisors to help them work investment queries.  There was a rumor floating that Federated Media was offered $100 million for a buyout, but turned it down.  Ad networks around the world are raising funds and are being acquired.  Google acquired DoubleClick for $3.1 billion and Microsoft acquired aQuantive for $6 billion.  Yahoo! and AOL have also picked up a couple of advertising companies as well.

Federated Media has been generating large sums of advertising revenue and has even paid some of their clients $1 million.  Federated Media’s network of publishers include TechCrunch, Mashable, GigaOM, Digg, and BoingBoing.