US advertising company Federated Media sells content marketing arm to LIN Media
(Credit: Federated Media) This image file contains the company logo of San Francisco, US-based advertising firm Federated Media Publishing Inc.
January 28
by VCPOST Staff Reporter 
Advertising firm Federated Media announced today that it has exited its content marketing division to focus on programmatic advertising. The said business was sold to LIN Media. Financial terms of the transaction were not disclosed, according to VentureBeat. In the last couple of years, the San Francisco-based advertising company has moved away from display ads to focus more on programmatic ads. Now, the firm is executing the same strategy with its content marketing division, which also encompasses sponsored or promoted content, the report explained. As part of the deal, Federated will change the name of its programmatic ad unit from Lijit to Sovrn. The latter will operate as an independent nit. Founder and chief executive officer (CEO) John Battelle will then sit as the chairman of Sovrn. Former chief operating officer Walter Knapp will become the new division's CEO. The transaction will also turn Federated Media into a portfolio firm, the report detailed. According to the advertising company, the proceeds from the sale will be used for Sovrn's expansion and workforce addition, VentureBeat reported. © 2016 VCPOST, All rights reserved. Do not reproduce without permission. Tags

US advertising company Federated Media sells content marketing arm to LIN Media

5 Questions with Walter Knapp, CEO of sovrn
By Alicia Wallace, Camera Business Writer
Posted:             04/06/2014 04:32:28 PM MDT
Updated:                 04/06/2014 04:32:46 PM MDT
Knapp
Earlier this year, Federated Media Publishing sold its content marketing business to LIN Digital Medial LLC for $22.4 million. As a result of the purchase, Federated Media spun out its programmatic media business — created when the company acquired Boulder-based Lijit — into a stand-alone firm called sovrn. Walter Knapp, formerly chief operating officer for Federated Media, relocated the headquarters of sovrn to Boulder from San Francisco and since has reinvested the millions from the asset sale into the growing sovrn. Knapp spoke with the Daily Camera last week about the changes, the company's growth plans and the state of automated ad buying. The following has been edited for clarity and length. 1. ) What brought about the sale and spinoff? We merged Lijit into Federated Media back in October 2010. The intent there was to put those companies together and take that combined entity public and that didn't work out for a host of reasons. But the Lijit business continued to take off and grow and the Federated Media business sort of stalled. About last year we started to notice a real discrepancy in the growth patterns of both businesses. The company formerly known as Lijit continued to grow, it was growing well over 100 percent year over year. What we decided to do is invest more into that business. We found a buyer for the Federated Media business and put the cash into  (the publisher platform). We found that when we were building Lijit that online publishers  — this could be local newspapers ... it could be niche magazines ... maybe digital-only publisher or even a blogger — they all share the same motivation. They want to engage their readership (base) and they want more readers. What we realized was those publishers lack any real advocate for them. Our business is about advocating for publishers and to help them make money. By doing that and having a very publisher-centric or very advocacy-centric culture, we've amassed a network of more than 20,000 publishers representing well over 1 million websites. 2. ) A study released March 31 by the Association of National Advertising showed that 33 percent of advertisers understood the concept of programmatic buying. How do you overcome that challenge? I think (programmatic buying is) still early in its evolution. I think that the industry does itself a disservice, to a degree, by using too many acronyms. (Programmatic media) is simply using information and data to drive marketing decisions. That's all it is. If you understand that a webpage is about food and, in part, about Mexican food and you understand the person visiting the site is on a particular type of computer in a particular geographic location that might have certain demographic characteristics ... once you start to understand those things — which the Internet was purpose-built for  — you can use that information to place a  message, a coupon. Programmatic advertising is simply using that information or that data to make a decision. 3. ) What growth are you seeing from real-time bidding? Once you understand where you want to place (the ad), why not let other marketers bid on that? The publisher gets to have multiple people competing in an auction format. Two years ago, I would say 30 percent of our revenue came from our real-time bidding infrastructure and today it's closer to 70 percent. 4. ) How do you intend to grow sovrn's operations? We re-headquartered the company to Boulder from San Francisco. There are 98 employees total in the company, about 85 of them are in Boulder. We've got another dozen in San Francisco and a small presence in New York. A month ago, we had 20 open positions. We filled eight of them here in Boulder. 5. ) What does sovrn's future entail? The business is growing really quickly and we have very large venture capitalists that have invested in us. (Boulder-based) Foundry Group is a lead investor. Oak Investment Partners is the largest investor. They're in the business of getting multiples on their money. They're pushing us to grow as absolutely quickly as possible. Who knows what the outcome will be. The asset is very attractive to a larger company or companies or (sovrn) can grow as a stand-alone firm that can go public. My goal is to build a very fast-growing company and that will take care of itself. —Alicia Wallace

5 Questions with Walter Knapp, CEO of sovrn

Expands Digital Media Portfolio with Industry-Leading Digital Content      Marketing & Publishing Company
January 28, 2014 09:00 AM Eastern Standard Time
AUSTIN, Texas--( BUSINESS WIRE )--LIN Media LLC (“LIN Media”)(NYSE:LIN), a local multimedia company,      announced that its subsidiary, LIN Digital Media LLC, has entered into a      definitive agreement to acquire Federated Media Publishing, Inc.      (“Federated Media”). Federated Media is an industry-leading digital      content and conversational marketing company that leverages the deep      relationships and content from its exclusive Publishing Network to      deliver contextually relevant advertising opportunities, and      conversational and engagement tools that effectively reach agencies’ and      brands’ targeted audiences across digital and social media platforms. “The acquisition of Federated Media brings an additional layer of      dynamic, proven and integrated solutions to our ever expanding      platforms,” said Vincent L. Sadusky, President and Chief Executive      Officer of LIN Media. “Superior content is at the epicenter of both our      companies, and this acquisition will extend our core competencies, drive      important synergies and further diversify our revenue streams.”
Federated Media pioneered "conversational marketing" around the concept      that high-quality independent sites and services attract influential      audiences who together create meaningful dialogue to enhance brand      loyalty and drive increased sales. Founded in 2005, with offices in New      York, NY, San Francisco, CA, and Chicago, IL, Federated Media is a      primary partner for agencies and brands looking to build relationships      with high influence bloggers that produce original content on a daily      basis for a wide variety of vertical categories, including parenting,      lifestyle, food, fashion, business and technology. “Extending a brand’s footprint with consumers across all screens has      been the core strategy, strength and growth catalyst for LIN Media since      day one,” said Robb Richter, LIN Media’s Senior Vice President Digital. “Adding Federated Media to our portfolio, inclusive of our ComScore Top      15 Video and Display rankings, provides new opportunities for agencies      and brands to reach their chosen demographic with the right ad, to the      right audience, at the right time.”
Federated Media's core demographics, content verticals and reach of over      33 million unique visitors per month will provide LIN Media’s clients      deeper engagement, more robust native ad solutions and significantly      extend its premium video and social platform offerings. In a powerful      combination with the leading technologies across LIN Media’s portfolio      of video, display, mobile and social platforms, including its recently      launched Video Insights Platform (“VIP”), agencies and brands can      efficiently and effectively reach their targeted audiences at scale,      leveraging the latest in conversational marketing, digital solutions and      reporting across all platforms. “We are excited that Federated Media will be a part of LIN Media’s      impressive digital media portfolio,” said John Battelle, Founder,      Chairman and CEO of Federated Media. “Through this acquisition, the      Federated Media brand will continue to be a leader in content marketing,      with greater access to resources and capital to better help major brands      engage in authentic, compelling conversations.”
Prior to closing, Federated Media will transfer the assets obtained      during its 2011 acquisition of Lijit Networks, Inc. to a newly formed      company, sovrn Holdings, Inc.
About LIN Media
LIN Media is a local multimedia company that operates or services 43      television stations and seven digital channels in 23 U.S. markets, along      with a diverse portfolio of websites, apps and mobile products that make      it more convenient to access its unique and relevant content on multiple      screens. LIN Media’s highly-rated television stations deliver important local      news and community stories along with top-rated sports and entertainment      programming to 10.5% of U.S. television homes. The Company’s digital      media operations focus on emerging media and interactive technologies      that deliver performance-driven digital marketing solutions to some of      the nation’s most respected agencies and brands. LIN Media is traded on      the NYSE under the symbol “LIN”. Forward-Looking Statements
This press release includes statements that constitute "forward-looking      statements," including statements regarding our future plans and      operations. Forward-looking statements inherently involve risks and      uncertainties that could cause our actual results to differ materially      from the forward-looking statements. Factors that could contribute to      such differences include, but are not limited to, our ability to      successfully expand our digital operations and other risks detailed in      our periodic reports filed with the Securities and Exchange Commission. Reports may be accessed online at www.sec.gov or www.linmedia.com . By making these forward-looking statements, we undertake no obligation      to update these statements for revisions or changes after the date of      this press release. Contacts


LIN Media Announces Agreement to Acquire Federated Media

Acquires Federated Media, Leader in Content & Conversational      Marketing
February 04, 2014 09:00 AM Eastern Standard Time
AUSTIN, Texas--( BUSINESS WIRE )--LIN Media LLC (“LIN Media”; NYSE:LIN), a local multimedia company,      announced that it has completed its acquisition of the stock of      Federated Media Publishing, Inc. (“Federated Media”), the      industry-leading digital content and conversational marketing company,      for $22.4 million. The transaction will be treated as an asset      acquisition for tax purposes and the purchase price is inclusive of $3.6      million of net working capital. On February 6, 2014 at 9:00 AM (ET), the      Company will further discuss this acquisition during its regularly      scheduled fourth quarter and full year 2013 earnings call. “We are pleased to have closed on our third digital acquisition in the      past twelve months and our largest to-date,” said Vincent L. Sadusky,      President and Chief Executive Officer of LIN Media. “Federated Media      complements our strategy of building a different kind of digital media      business that drives scale, synergies and opportunities to further      expand our national, regional and local sales channels.”
Federated Media’s premiere network of influential content marketing      publishers and a client roster that includes prominent brands and      agencies generated approximately $37 million of revenue during 2013. Federated Media has been the leader in conversational marketing for      years and as a result of this acquisition, Federated Media’s independent      publishers will be able to further monetize their content by leveraging      LIN Media’s expertise, relationships and resources. Additionally,      clients will benefit from deeper engagement, more robust native ad      solutions and premium video and social platform offerings that have      distinct competitive advantages from the other mechanistic or bulk media      buying options available today. “LIN Media is a true partner that helps agencies and brands effectively      and efficiently reach their target audiences at scale by utilizing our      portfolio of video, display, mobile, social and content platforms, as      well as our comScore Top 15 Video and Top 25 Display market share,” said      Robb Richter, LIN Media’s Senior Vice President Digital. “Federated      Media’s talented employees are energized by our investment to further      grow and innovate this strong and stable business. Our entire sales      force is eager to roll out our expanded set of offerings.”
About LIN Media
LIN Media is a local multimedia company that operates or services 43      television stations and seven digital channels in 23 U.S. markets, along      with a diverse portfolio of websites, apps and mobile products that make      it more convenient to access its unique and relevant content on multiple      screens. LIN Media’s highly-rated television stations deliver important      local news and community stories along with top-rated sports and      entertainment programming to 10.5% of U.S. television homes. The Company’s growing digital media portfolio helps agencies and brands      effectively and efficiently reach their target audiences at scale by      utilizing its ComScore Top 15 Video and Top 25 Display market share, and      the latest in conversational marketing, video, display, mobile, social      intelligence and monetization, as well as reporting across all screens. LIN Media is traded on the NYSE under the symbol “LIN”. Forward-Looking Statements
This press release includes statements that constitute "forward-looking      statements," including statements regarding our future plans and      operations. Forward-looking statements inherently involve risks and      uncertainties that could cause our actual results to differ materially      from the forward-looking statements. Factors that could contribute to      such differences include, but are not limited to, our ability to      successfully expand our digital operations and other risks detailed in      our periodic reports filed with the Securities and Exchange Commission. Reports may be accessed online at www.sec.gov or www.linmedia.com . By making these forward-looking statements, we undertake no obligation      to update these statements for revisions or changes after the date of      this press release. Contacts


LIN Media Completes Largest Digital Acquisition in Company History

Posted On February 1, 2014By Melanie Williamson In Business , Content Marketing , Digital Media , News And 43 Views
Federated Media Sells Their Content Marketing Arm
Federated Media, the online advertising company, recently sold their content marketing arm of their business to LIN Media . In addition to their content marketing, they sold the name “Federated Media” with it. While selling their name may seem like a bad sign for the future of the company, they are still moving forward. The programmatic ad arm of the business is continuing to operate under the name Sovrn Holdings. The terms of the acquisition have not been released, so the value of this deal is unclear. Federated Media started in 2005, after raising over $50 million in funds through Oak investment Partners, Omidyar Network and more. The company started with a strong focus as an ad network company. They partnered with several independent blogs including well known ones such as TechCrunch. Despite this early focus, they had a difficult time really excelling in one area. After a while, the company changed its focus to “conversational marketing” campaigns. These campaigns were both customized and interactive, but this didn’t last either. The company than changed again to focus on programmatic ad-buying. John Battelle, founder of Federated Media, will act as executive chairman over sovrn, and Walter Knapp will be the CEO. Sovrn will be headquartered in Boulder, Colorado. This arm of the business saw a 93% growth in revenue between 2012 and 2013. According to Knapp, “The proceeds from this sale will allow us to lean heavily into our platform-based programmatic ad services and to roll-out an expanded set of offerings to engage audiences and drive monetization.”
Here is an excerpt from the email Federated Media Publishers received regarding the sale:
Dear FM Publishers,
We are writing to you with some exciting news. Federated Media Publishing announced today (Press Release) that it has sold its content marketing business and all associated trademarks, including the Federated Media brand, to LIN Digital Media LLC, a subsidiary of LIN Media (NYSE: LIN)…. We truly believe that this is a strategic growth opportunity for both companies. Since Federated Media was founded in 2005, we have built a robust and sustainable content marketing and digital media business. LIN Media, historically grounded in television, has built a strong digital media business over the past ten years. This deal allows LIN to expand its Digital Media ecosystem while allowing Federated Media to continue to build upon the conversational marketing model it founded in 2005. LIN will be further investing in the Federated Media brand and business model, and we will continue to work with all Federated Media’s content marketing publishers and marketing partners.

Federated Media Sells Their Content Marketing Arm

Ford Credit supports Ford's vision to make people's lives better by changing the way the world moves. Since 1959, Ford Credit has worked with dealerships across the globe to put people behind the wheels of great Ford and Lincoln vehicles.

Ford Motor Credit Company

Throughout the campaign , content produced by Boing Boing will be distributed across the Federated Media of sites using the company 's `` native conversationalist '' ad unit , in partnership with the 2013 Ford Motor Credit Company C-MAX .

Boing Boing, Ford, and Federated Media Partner to Deliver the Boing Boing: Ingenuity conference.

Zemanta develops audience development tools which are available through its editorial and content discovery networks. Zemanta recommends content to diverse network of engaged communities and brings new readers to sites. Publishers use Zemanta's technology, who range from Forbes.com and 9to5mac.com, down to tens of thousands of blogs on WordPress.com and Typepad.com.

Zemanta

Automattic is a purveyor of blogging and site-building services. The company's WordPress provides an online publishing platform to a community of creators, bloggers, business owners, and community organizers. The company offers services such as domain purchase, web hosting, e-commerce website builder, dynamic website builder, email support, live chat support, google analytics integration, search engine optimization, shipping integration, file transfer protocol, logo maker, etc. Its plugin products include bbpress, BuddyPress, WooCommerce, Elementor Website Builder and Yoast SEO. WordPress was founded in 2003 and is based in San Francisco, California.

Automattic

Mixx aims to deliver personalized and relevant content from the web to time-starved people.

Mixx

Fancaster.com showcases videos of sports, movies, events, competitions, celebrities, and consumers. The company was founded in 1988 and is based in Fort Lee, New Jersey.

Fancaster

Federated Media Publishing

Powerful Media

Funding Date

Pre-Money Valuation

Post-Money Valuation

Amount Raised

Shares Authorized

Issuance Price

Dividend Rate

Liquidation Preferences

Liquidation Price

Participation

Conversion Price

Anti Dilution

General Voting

Board Voting

Par Value

Companies offering tech-enabled marketing and advertising services.

Ad Tech

Acquired

Federated Media Publishing powers the Independent Web. The company believes that the majority of meaningful engagements across digital media occur via high-quality independent sites and services. These sites leverage top digital talent to attract influential audiences who together create meaningful dialogue. Brands benefit from improved loyalty and increased sales when they become part of this authentic experience. On January 28, 2014, Federated Media Publishing was acquired by LIN Media.4M.

Wells Fargo Success Story

Professional Services

Platform Overview

Federated Media Publishing

Compete with Federated Media Publishing?

Compete with Federated Media Publishing?

Discover the right solution for your team