Glam Media raising $200M, to announce Google deal
Updated
Glam Media, the Brisbane network of sites that says it is the fastest growing property on the Web, is raising $200 million in fresh financing. It is also expected to announce a deal with Google tomorrow, which will let Google power search on Glam’s network sites.
A source forwarded VentureBeat a copy of the document Banc of America Securities is using to help Glam raise the financing. The document does not mention a valuation for the company, but some believe the company could be valued at $600 million or more. It should be raised in September.
Here’s a copy of the document. [Update: We're now told the document is an early draft. There are three other banks on the deal, including Allen & Company, Deutsche Bank and Credit Suisse.]
We’ve written at length about Glam in the past (here, for example), and its success at representing a group of sites focused on woman, selling the advertising for them. We plan to write more about Glam shortly [update: here's the follow-up piece]. The memo makes several key disclosures, including that the company is on track to make $21 million in revenue this year, but expects to make $150 million next year. It expects a loss (EBITA) of $3.7 million this year, but a proift $39.1 million next year (see chart below).
Glam Media says its network of publishers enjoy 19 million visits per month in the United States. Glam is also going to announce tomorrow a deal with Google, as part of Glam’s move to offer a new search feature for each site in its network. Glam itself will power search results for people wanting to search for site-specific content. However, Glam will rely on Google to let people to conduct Web-wide search. The Banc of America memo highlights the following:
* The fastest-growing web property in the United States with a year over year increase in unique visitors from 782,000 to over 19.1 million monthly unique visitors in June 2007 [this is faster than the initial increase of MySpace, the memo points out];
* # 1 in terms of traffic amongst women’s web properties within 20 months of launch, with a 23% lead over iVillage.com, which held the top ranking for over nine years; and a
* Partnership with Google enabling Glam to offer additional search and text advertising through its owned and operated websites and publisher network.
Next Story: Mahalo: If you can’t beat them, follow them
Previous Story: Best of the blogosphere on disease genetics
About the Author, Matt Marshall
Matt launched VentureBeat in September of 2006, with the realization that no one else was covering the entrepreneurial and tech innovation scene with the velocity or depth that he was. Prior to founding VentureBeat, he covered venture capital for the San Jose Mercury News from 2001 to 2006. In 2002, Matt was awarded "Journalist of the Year" by the Northern California Society of Professional Journalists. Prior to working at the Merc, he was a correspondent for the Wall Street Journal in Bonn, Germany from 1995 to 1998, and a writer for the Washington Post in 1994. Matt holds a PhD in Government and an MA in German and European Studies from Georgetown University. In addition to VentureBeat, Matt is also the Executive Producer of DEMO, the leading launchpad event for emerging technologies.
-
http://venturebeat.com/2007/08/12/glam-to-sign-1-billion-ad-deal-and-draws-critics/ Glam to sign $1 billion ad deal — and draws critics | VentureBeat
-
http://venturebeat.com/2007/08/12/glam-to-sign-1-billion-ad-deal-and-draws-critics/ Glam to sign $1 billion ad deal — and draws critics | VentureBeat
