HuffingtonPost.com raises $5 million, but East Coast money
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The media landscape is changing by the minute. Unlike business and tech, which is drawing interest by West Coast firms like Elevation, the politics stuff is attracting the East Coast folks, which makes sense.
We have no idea how Huffington is going to return money on this very large investment, but there are some suggestions given in the press release (we're searching for a link), including -- surprise -- video: "The HuffingtonPost has just introduced video blogs and will soon be launching web video newscasts..."
Update: More on back-story about how this came about: Eric Hippeau at Softbank Capital, former chief executive at Ziff Davis, was looking for a news investment.
http://www.siliconbeat.com/cgi-bin/mt331/mt-tb.cgi/1846
Links to blogs that reference this entry:
Well, if you count visits and ad revenue, HuffPo is a bargain at $5M for 30% of the company...
whenwego on August 7, 2006 4:05 PMComment link
I can't figure out why someone with her money and friends with money would go to a VC firm.
Ed Kohler on August 7, 2006 8:35 PMComment link
Ed, why is it so difficult to understand. If it is true she's only giving away 30 percent, she's not giving up control -- and at the same time, she's getting $5 million in cash, a great deal and something she could probably only do in this bubbly environment. Take the money!
Matt Marshall on August 7, 2006 9:17 PMComment link
