Take the money and run Mr. Battelle
A lot of rumors are flying around about potential buyers for John Battelle’s Federated Media. TechCrunch says he turned down a $100mm offer to “shop around for a higher price.” My advice to Mr. Battelle–TAKE IT!
Federated Media, by its own account, “support[s] independent website authors and audiences, by connecting them to marketers.” Loosely translated, this means the only asset they have is their relationship between external publishers and marketers. No content. No product. And No loyalty (as far as I can tell, FM’s big publishers do not have to sign exclusive or non-compete deals). Sure, FM has some impressive blogs, powered by the flagship BoingBoing (nice to have friends with really big websites), but the right marketer (or better yet, salesperson) could come along with a more attractive offer and Digg, TechCrunch and the rest would move on without a moments notice.
The company employs over 50 people, so they’re doing something right, but networks are ripe for pilfering. Someone can always come along with a shinier offer and higher CPM and you can quickly lose inventory.
I don’t know John personally, but our lives have crossed indirectly at IDG and with our interest in ad networks, but I would strongly urge him to cash out.
