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$100 Million Payday For Feedburner - This Deal Is Confirmed
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May 23 2007

$100 Million Payday For Feedburner - This Deal Is Confirmed

Michael Arrington

146 comments »

Rumors about Google acquiring RSS management company Feedburner from last week, started by ex-TechCrunch UK editor Sam Sethi , are accurate and are now confirmed according to a source close to the deal. Feedburner is in the closing stages of being acquired by Google for around $100 million. The deal is all cash and mostly upfront, according to our source, although the founders will be locked in for a couple of years.

The information we have is that the deal is now under a binding term sheet and will close in 2-3 weeks, and there is nothing that can really derail it at this point.

Huge congratulations to Feedburner. The company was founded in 2003 and has raised just $10 million in capital over two rounds. Portage Ventures funded their $1 million Series A round in 2004. The $9 million Series B round was closed in mid 2005 (second close in 2006), from Mobius Venture Capital and Union Square Ventures.


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Comments

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  1. Steve S

    Well I guess we are going to be seeing “Ads by Google” in our RSS feeds pretty soon. I think this is a really good sign, Google’s business is delivery information efficiently. This will help that immensely.

  2. KillerStartups.com

    Way to go Feedburner!

    Thanks Techcrunch for breaking the news.

  3. Rajiv Dingra

    This just reinstates the fact that google will buy anything that is compatible and increases its ad revenues more that its current products do.

  4. noseoguru

    I like Feedburner and if anyone was worth some money it was them. I can’t wait until I can have AdSense advertising in my RSS feed; you just can’t escape ads :)

  5. Tranix.net

    Google and Yahoo are racing :-) I feel bad for yahoo that they’re one step behind Google

    GoGoogle

  6. Zaid

    I’m surprised. 100mil sounds little for what I would think is a high growth area.

    On the other hand, if feedburner didn’t sell it would always be at google’s peril. With more and more people using analytics, adsense, adwords combo–if google introduced a well done competitor, feedburner’s future market growth would slow down.

  7. Peter

    Interesting. If Google injects AdSense into the feeds will it block out ads from other networks or other types of advertising?

  8. zoso

    seems a fair amount.

    prolly google will somehow include it into google reader

  9. Edward O'Connor

    Good for them! I think this makes a hell of a lot of sense for both companies.

  10. Adam

    They should just rename the internet to Google.

  11. Nick

    Uh oh, does that mean there will be a Google engineering office sprouting up in the Windy City?

  12. Erik Schwartz

    Fred Wilson is having a good week. Two exits in 3 days.

  13. carlo

    “Uh oh, does that mean there will be a Google engineering office sprouting up in the Windy City?”

    No.

  14. Brian Lash

    Google? RSS? Smells like trouble for TextLinkAds.

    Oh well. Congrats Feedburner!

  15. Nathan Kaiser

    Makes a lot of sense for both organizations. Way to go FeedBurner!

  16. CS

    Loving this move by Google. Congrats to feedburner. I think I speak for everyone in saying that Feedburner rules for RSS.

  17. DinoHorse

    I am very happy for Feedburner, this is on of the services that are so usefull, and so well done… Congrats!!

  18. Ali

    More google ads in my feeds now.

  19. Jessica

    “Google? RSS? Smells like trouble for TextLinkAds.”

    How so Brian?

  20. Brad

    Wow. Great going feedburner.

  21. kundojjala

    who will acquire techcrunch?

  22. Lee

    Just $100mil - sounds quite small compared to the youtube deal.
    Surely feedburner should be able to be more profitable than youtube?

  23. Useful Concept

    Feedburner is a great product and company. Very impressive, though the figure seems quite small. Then again they are still under 500,000 publishers. I would have thought they had more.

    “Currently feeding 422,717 publishers who’ve burned 721,074 feeds (as of 21 May 07).”

  24. permanent hater

    Add:

    2 rounds of fund raising… +
    4 co-founders… +
    a bunch of geek employees with stocks… +
    $100 price tag +

    = not such a great payday for each co-founder… $10M max for each

    Sucks to have friends when you start a company

    LOL

  25. Ed

    Wow. Who doesn’t use Feedburner. I agree with Zaid. Is that too little?

  26. Venkatakrishna Nalamothu

    Google is much ahead of its competitors in vision and strategy. Our future revolves more around Google. As long Google is sharing some money, I don’t bother about others.

  27. Ed

    @ 23 - RSS should continue to grow. Plus, that’s 400+K publishers. That’s translate into alot of readers for each. Look at TechCrunch. I remember the single thousands readers.

  28. Will Kern

    Cograts to Dick and Company for an excellent exit. Hats off to Mr. Feld and Mr. Wilson for a wise Series B investment.

  29. -gary

    Great, I keep trying to stay away from Google, and they keep buying up the services I use.

    Since I’ve was banned from AdSense over a dispute I had with them years back, what does that mean for my ability to embed ads in my feeds? I’m sure the foot will fall on the current advertising in FB soon, if not immediatly.

    To me, this whole 2.0 consolidation crap is getting annoying. I would love to outsource more of my stuff, but when buyouts and mergers keep happening left and right, there is no safe place to go. I’ve prob used 20 different services over the years that have been gobbled up and phased out in favor of the largers service that I turned down in the first place.

  30. Curt

    When you say a “rumor” was “started” by an “ex-TechCrunch” employee, did you mean it was a “story” that was “broken” by a “competitor” who scooped you?

  31. permanent hater

    I hear the next acquisition is Jajah.

  32. JB

    Wait, I thought you were trying to get away from all this acquisition BS and get back to the cool tech apps??? Or was that post just one of your many mood swings? You create your own reality, my friend.

  33. Cris

    Hopefully this doesn’t mean Google pauses new signups like they did for Writely as they Google-fy the new property.

  34. UpstartThis

    As of May 2007, FeedBurner hosted feeds for 410,769 publishers.
    That makes the number of what Google is paying per publisher to be $243.

    Congradulations to FeedBurner.

    Now how about Feedster and anyone knows any other sites that are still not purchased?

  35. Nate

    Huh?

    Am I the only one that really doesn’t want to see ads popping up in my RSS reader. Isnt’ that why I use my RSS reader instead of relying on my email inbox which is full of ads (spam). Now my reader is going to be full of crap?

    Or is this deal so that better/more ads can be placed on Feedburner’s stylized view of rss feeds. If thats the case, I still don’t get it. With the latest browsers all having their own RSS view no one sees this stylized view anymore. The only ones that still see it are using IE6.

  36. Blonde 2.0

    Google is racing against Yahoo, Microsoft, and winning! Congrats FeedBurner. Really enjoy your product!

  37. Rajiv Doshi

    Congratulations to the FeedBurner team and great move on Google’s part., it just makes sense for them to be a strong competitor in RSS advertising. Everyone wins from Google, FeedBurner and even the publishers who use FeedBurner.

  38. Steven Roussey

    Congrats to Feedburner! And to Google!

  39. Tech News

    Wow - this is a stunner to the FEED Business

  40. pallet jack

    only 100 million? - that is a lot of money for a technology that will be replaced by ATOM in the next year - then again

    - I guess the purchase was the customer - not the product …

    -RB

  41. ugh

    Google. Ugh.

  42. Find Hot Bargains

    When will the buying stop?

  43. fred wilson

    Mike

    I can’t say anything about the rumored deal, but you did miss two other VC firms who are in the deal; Sutter Hill and DFJ. It’s a great management team and a great group of investors.

    Fred

  44. John / SocialNext

    Congrats to Feedburner!

  45. Tech News India

    Congrats to Feedburner!
    Looks like a great idea + management skills = something google wants more of!

  46. Mike

    Anything related to the Interwebs, technology, information, data, advertising…will one day be a Google product. As Adam said, the Internet should just be renamed Google. ISPs will become GSPs.

    During the Super Bowl, the network will sell 30-second Google spots for millions at a clip.

    TechCrunch will becoming GoogleCrunch.

    Marketing will becoming “Google gaming” or maybe just “Google optimizing.”

    And perhaps best of all, piracy and copyright infringement will forever be known as “f–king over Google.”

  47. Justin Cook

    I don’t get it, how is “Google? RSS? Smells like trouble for TextLinkAds.” applicable? Where’s the trouble?

  48. CMS

    Good can make everything :D

  49. Frank Gruber

    Congrats to FeedBurner! :)

  50. Martin Porcheron

    Sounds like users might benefit as much as Google if this is true.

    I’m guessing FeedBurner’s stats system will be replaced/merged into Analytics, and made free, of course. We might also see Google Accounts integration so that it can work with AdSense + AdWords through one interface.

  51. Cafe_Cafe

    Google will buy us all slowly :)

    Congratulations, you´ve a fantastic blog.
    Pay me a visit whenever you want at http://FreeOnli...un.blogspot.com
    Regards

  52. soxiam

    It’s interesting how everyone’s talking about the obvious adsense-in-feeds angle but no one is talking about the feed analytics data being afforded by this acquisition. Google just tapped into another major vein they can data-mine and virtually every one of their products could potentially benefit from this down the road.

  53. Marshall Kirkpatrick

    FeedBurner publishes feeds for IDG Tech Publishing ( PC World, Computerworld, Macworld), Reuters, USA Today, AOL, Newsweek and who knows how many more. I love FeedBurner (they also REALLY want people to capitalize the B, fwiw) and if they are happy then it sounds good to me.

  54. Don MacAskill

    Crap, that sucks! Yet another service I *love* being bought and likely destroyed (JotSpot, anyone?).

    I wish these big companies could actually acquire things without killing them most of the time.

  55. Paul B.

    Congrats to Feedburner - oh my!

  56. PENIX

    100 million, God damn! Google is spending money like the world is ending tomorrow.

  57. Allen Stern

    Yea Marshall, I had a runin with Traci at big B about that a few months ago. I even made her a big B poster and left it with her when I visited their offices in Chicago.

    :)

  58. Technogeekboy

    Interesting. I’m curious to see how adsense gets worked in and if we’ll have to pay more to keep the ads out (or if we’ll simply miss out on the revenue share). I use FeedBurner at our nonprofit association and ads will not be allowed.

  59. Wil Schroter

    Anyone know how much they were doing in revenues?

    Funny how rarely this gets asked.

  60. Bill Hartzer

    Gee, now Google will know even more about our blogs.

  61. David Carrero Fdez-Baillo

    I think about this buy, is cheap :)

  62. Manfred Zotter

    Congrats to Feedburner!

  63. Bryan

    Never used feedburner, just recently started using Google Reader but from what I’ve seen, they could use a good company to improve their RSS reader.

  64. youtubesearcher

    to permanent hater

    “not such a great payday for each co-founder… $10M max for each”

    Are you serious, $10M not a great payday, what planet are you from ? or are you smokin too much youtube style aquisition.

    I doubt it is even $10M, probably more like $5M, but that is still downright awesome.

  65. P. G.

    This toughens competition for Technorati.

  66. Morten K. Holst

    Should be very interresting to see if Google will keep it the way it is now (and just add some ads) or if they’re going to take it waaaay further than that. Think about that stuff incorporated into Gmail, or at least the option to.

  67. starcraft 2 wallpaper

    Google is rapidly building his empire :)

  68. Brian Lash

    @19

    Hey Jessica. I was referring to fact that a lot of bloggers use TLA’s Feedvertise to monetize their rss feeds — something you couldn’t do with Google before this acquisition.

    Hope we see that functionality soon.

  69. Sam Sethi

    Thanks for confirming my scoop I have a few more on the way ;-) www.vecosys.com coming in the next few days.

  70. Amaiko

    I’m FeedBurner User I Hope This Deal Will Be Finished

  71. Kevin Burton

    Wow…. couldn’t have happened to a nicer bunch of guys either. Maybe when they get bored at Google they’ll come work for Tailrank :)

  72. Blake

    Oh come on.. Google doesn’t want to own the internet, they just want to organize it, or get more revenue. “Search, ads, apps.” This purchase fits the bill.

  73. Sameer

    Big congratulations to Feedburner. Every interaction I’ve had with them has been a very good experience. Google is lucky to have this team join them.

  74. Kevin Burton

    btw… this is $23 per publisher who’s signed up with Feedburner…….

  75. Kevin Burton

    Ouch… sorry… didn’t hit the 0 on that last post…. It’s $230……. sorry.

  76. nenpimania

    Wow. Good for those guys, although it seems like with so many venture capital firms they didn’t really get much individually. The youtube guys got several hundred million a piece and their service was losing money. These guys are actually profitable, apparently, and probably should have held out for more.

    Either way, congrats to them!

  77. Andy Atkinson

    As a software developer these days, looking for a new web-based project that one wants to grow into a business, you’d be wise to look at potential mergers/acquisitions that Google might make and think about how your product could satisfy those requirements. For example, photo sharing site Zooomr was built to be acquired, as I understand. More acquisitions: Orkut, Dodgeball, Writely, Google analytics, Deja I think (google groups) Keyhole (earth), Picasa I think, the radio ads company, YouTube, now Feedburner, there sure are a lot of opportunities.

  78. Enjoy Deals

    Love their product…. Lets see what the users will get from new relationship…

  79. EmperorFrost

    One thing I’d like to know if when this was a rumor, was it on “Truemors”. If not, then Guy just had a big hit.

  80. Steve's Tech Blog

    Then, I must be their next acquisition.

    By buying me, they will be able to import the .MIS(metadata) into a little something called Youtube.

    Oh well! I just need to wait a few days/hours for them to raise the money and contact me. :D

  81. Website4wealth

    Incredible..

  82. Graeme Thickins

    I wondered why FeedBurner support was being so damn nice to me the last coupla days….they were giddy counting up their options :-)

  83. Brett

    Michael sez: “Huge congratulations to Feedburner. The company was founded in 2003 and has raised just $10 million in capital over two rounds. Portage Ventures funded their $1 million Series A round in 2004. The $9 million Series B round was closed in mid 2005 (second close in 2006), from Mobius Venture Capital and Union Square Ventures.”

    I look forward to Michael’s next article about the corrupting influence of venture money and Web 2.0 hype on Silicon Valley culture.

  84. Jeff Christensen

    Matt, you’re winning. Well done.

  85. tobe

    seems a little unfair

  86. Hari

    This is a great deal. Feedburner will only get better in the hands of google.

    But, let us all hope we don’t see any ads on our feeds.

  87. Matt

    No one pointed out the obvious… this is a play by Google to acquire more personal information (i.e. what feeds people read) on each of us, in order to serve better ads.

  88. MAC/PAC-D & CSTaR Escapee

    Hurray! Dick Costolo and his team are incredibly nice people (and pretty fine geeks). I am so happy for them. This payoff could not happen to a better bunch. This news just makes my day.

  89. Steve Morsa

    Google’s (unspoken) slogan:

    “All your data are belong to us.”

  90. Planet Malaysia

    What is the next? Which company is the next acquire by Google?

  91. Richie

    It was a steal!
    I think FB worth more than that.

  92. vijay

    hmm.. I too think that deal is somehow lesser that what it could be!
    Well $100 M still a bigggg figure!

  93. aPis

    Google is taking over the world :P

  94. Myo Kyaw Htun

    @Planet Malaysia … I agree with you. I want to know it tooo.

  95. Alex Leonard

    I think 100 million sounds so small only when compared to the recent giant acquisitions that have been made.

    1.6 billion for You Tube
    3.x billion for Double Click
    6.x billion for aQuantive

    Really though, 100 million is massive.

    @#24 - permanent hater: Not such a great payday? Even if the founders get 10 million each out of the deal, wtf, they’re loaded. They can sit back and lounge by a pool for the rest of their lives.

  96. karthikeyan

    Grt start for Google in feeds…..
    from now Google will find a new dimension in feeds……..

  97. Hosting

    That is great… for that price we will sell to

  98. Andrew

    That would be great, maybe they can make Blogger’s feeds smarter without having to modify autodiscovery URL by yourself.

  99. Bruno

    Who needs business models anyway ?

  100. Satish

    Let it burn, let it burn, let it burn.

  101. Peter Cooper

    Interesting deal. I think this totally makes sense for Google, although I’m not sure it’s such great news for the industry as Google’s track record for allowing acquisitions to blossom is not good. I guess it does mean a few smart cookies in the industry will be out of competitors’ hair for the next couple of years ;-) (though this is not always a good thing!)

    From the latest numbers I’ve seen, FB had 20x our users and 10x our traffic.. wonder if I can flip for $5m, lol! I think both Google and FeedBurner got a good deal at the end of the day.

  102. viralavatar

    I m beconing quite angry with google..it s becoming the big brother..and actually, yes 100 million is really cheap!

  103. Peter Cooper

    Actually, since they never “really” made any traffic numbers present, and I’ve only seen a few minor references to it, I need to reinforce my numbers above were pretty much pulled out of my butt on that front ;-) Users is about right though.

  104. StartupStudio.com

    Here’s an interview with Matt Shobe, one of the four co-founders covering how they started the company, came up with the idea, lessons learned, and other ventures the four started together prior to FeedBurner. http://www.star...sts/2007/03/19/

  105. mastermax

    This is a very good deal for google.

  106. baki

    The estimated value of Feedburner is about $20,000,000.
    Feedburner is overvalued.
    It looks like google buy every popular site on the net

  107. Dave

    Like I said the other day - the Web is a winner take all market! I’m a great teacher!

  108. Guy R. Vestal

    As soon as Google begins flooding our feeds with their Google SpamAd’s, Google AdNonsense, Google SpamWords, and all the other Spam that Google has drug the entire internet into, you can be rest assured that folks will begin dropping our feeds ASAP. As a search engine, Google’s results bear little relevance to what you are searching for, and the only other purpose it serves is to make foolish advertisiers think that they are getting somewhere with those spamads on every other website that everyone ignores anyways.

    Google’s “Spam Kingdom” will collapse like a house of cards one day, and all of the unmarried geeks that girls will not even look at, living at home with their parents still at 30+ yrs. old, speaking Klingon, and buried neck deep in their “code”, will be in tears as their heroes at Google are standing before a Grand Jury in an “Enron Type” scandal…

    Time to start looking for an alternative to Feedburner fast, your readers will appriciate it!

  109. eadhab

    wow good idea

    ____________________________

    http://www.gemstone.th.gs

  110. dean

    You’d think Google could build something like Feedburner on their own for a lot less money, and attract most of their client base to boot.

  111. Ariel

    Very cool. Congratulations to the Feedburner team!

  112. Alex

    Hmm… I do worry now about Google. I understand the competition with Yahoo and Microsoft but Google are just resorting to buying out every web service that’s gaining ground. First YouTube, now this.

    I also think web designers and the tech-oriented should stop just complementing everything Google does and saying “wow, that’s great” and understand that this is just business, and that everything like this should be taken with a pinch of salt. I’m not saying this deal will harm FeedBurner, on the contrary, but in the end it all comes down to money, and the tech crowd should be wary of this.

  113. Paul J

    google is pretty much buying everything that will make money for them. out of all the rss readers Feedburner is the best and most popular. google is like a decade ahead of all the major searchengines out there. gOOgle IS WAY AHEAD IN BOTH INNOVATION AND in content delivery.

  114. taylor

    I’m not very surprised about this. with the quality of service that feed burner was putting out I’m not surprised it would get bought by Google.

  115. Sean FitzGerald

    I, for one, welcome our new Google overlords! :-)

  116. JamesH

    Great, Google is taking over the intraweb. When is the FTC going to step in?

  117. pwb

    Wow, Google way OVER-paid, imo.

  118. Martin

    Oh, Google has been one giant. Which site will be its next goal?

  119. Johnny

    Google slowly dominates the earth… maybe that’s why they create Google Earth

  120. Dan Green

    There is no nicer group of people that the folks at FeedBurner. Traci, Eric, Matt, John Z and everyone else make the company what it is. Yeah, the product is fantastic, but the people make it happen.

    Here’s hoping that Google preserves the corporate culture…

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