SAN FRANCISCO (AdAge.com) -- Ad network VideoEgg has purchased blogging network Six Apart and the companies have combined to form Say Media, a media company that will create advertising campaigns it is billing as "conversational and interactive." No purchase price was disclosed; the combined company cites a potential reach of 345 million global unique visitors.
VideoEgg has gone through several business models since its 2005 launch; executives said company revenue has grown to more than $50 million this year. Six Apart, founded in 2001, was at one time one of the most powerful companies in Silicon Valley -- its founders speaking at global conferences such as Le Web and TED. It owned LiveJournal, designed MovableType blogware and the TypePad blog hosting service and Vox, the latter of which the company will shut down at the end of September.
VideoEgg President Troy Young said his company has been growing by 100% every year and had 230 employees before the acquisition; after the acquisition it will count more than 300. He said he and his colleagues had been looking at companies for more than a year and that buying Six Apart made a lot of sense.
"It gives us access to lots of influential voices," Mr. Young said. "[It gives access to] lots of reach and it gives us access to a content platform that we can evolve into a media platform." The platform will continue to make money through the ad network.
The Say Media website will go live Wednesday with a video from Mr. Young, Six Apart Co-Founder Mena Trott and VideoEgg CEO Matt Sanchez discussing the joint venture and explaining their vision of a modern media company. Six Apart CEO Chris Alden will step down and Mr. Sanchez will run the new company as CEO.
"A modern media company has a strong technology, an ability to deliver advertising to any device -- across display and mobile -- and a very strong competency in managing media rights. That includes working with independent creators and sites to take that attention and sell it to advertisers," said Mr. Young in a phone interview.
He gave the example of the ABC TV network snagging the rights to the Academy Awards -- ABC has to know how much to pay for those rights, how to make money from the advertisers and how to build an audience around the Academy Awards. "Say Media is going to do the same thing," Mr. Young said. "But we're getting scale across the hundreds and hundreds of influencers that the advertisers care about who are creating and shaping opinions online."