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Valleywag
On the surface, this looks like a straightforward story. Google is tightening its grip on text advertising with the acquisition of Feedburner. We've confirmed yesterday's speculation on the Mountain View search engine's latest deal, from Sam Sethi, and can add one fact: the rumored purchase price for the Chicago-based startup is of the order of $100m. Google, with its goal to monopolize classifieds on the web, always seemed the natural buyer for Feedburner, which pioneered text links in syndicated news feeds. But we'd question that logic.
Text ads in feeds receive so little attention from readers that Google, which pursued its own trial, abandoned the experiment. Feed readers, the applications and sites on which geeky internet users scan news items, often do not support the graphical ads which brands prefer, closing off that avenue for a broker such as Feedburner.
So, why would Google pay such a high multiple, about 10 times revenues, for the startup? Probably, for the same reason it has developed Google Analytics: it is another way for Google to tie in independent online publishers. Feedburner provides an array of services to sites, such as email newsletter publishing, and the integration of external news and photos. It is more valuable as a publishing service than an ad broker.
Comments
Quick! Someone post this on Truemors!
That’s what what U.K. blogger and Web 2.0 consultant Sam Sethi is saying, based on a “trusted source.” Chicago’s Feedburner places ads at the bottom of RSS feeds, the subscription technology that early adopters use to read blogs and other news.
Rumor turned out to be true.
http://valleywag.com/tech/feedburner
rss is more powerfull than html thats why google pays hell of million dollars to feedburner. Remember google did this for youtube too.
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