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Going Once, Going Twice, Sold For $100 Million!

written by John Chow on May 23rd, 2007

Google continues on their goal of taking over the world by buying up anything that has a remote chance of getting big. The latest purchase added to the growing list of Google acquisitions is FeedBurner. These are the guys that handle my RSS feed and show that fancy counter that say I have over 5,000 RSS readers. They also run the FeedBurner Ad Network (FAN) that makes me a bit of cash.

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.

FeedBurner was founded in 2003 and funded with $10 million of capital in two rounds. Google will be paying $100 million cash for the company. $10 million into $100 million in four years? That’s a pretty good return on investment! However, I am surprised that FeedBurner is doing an all cash deal. The taxes on that kind of gain would allow you to live off the interest for the rest of your life.

Source: TechCrunch

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  1. Craziness! Is there anything on the internet that won’t be part of Google?

  2. That is crazy. Now will the change feedburner? Will the Google Brand it? Will they leave it as is? Will they have an option to put AdSense ads into our RSS Feeds via Feedburner?

    Be interesting to see!

    • I think it’s safe to assume that you will see Google AdSense ads in a Feedburner RSS real soon.

      • Will it makes us to earn more money from our feeds?

      • Yes, I agree 100%. Text-Link-Ads already allows you to monetize your RSS feeds via their Feedvertising program, so I think it’s safe to say that Google plans to dominate this area as well.

        Having AdSense in a feed will certainly be welcome news, especially for those whose readers mostly read via feed. TechCrunch, for example, has over 411,000 feed subscribers and only a small portion of them visit the actual site regularly. So to be able to monetize a feed like that will be a goldmine.

        To note, TLA’s Feedvertising technology only supports WordPress (not Blogger) and I bet you know why! :wink:

        • I was just reading through the FeedBurner blog and their April 26th (2005) post states, “Google has launched a trial program enabling AdSense in RSS, and FeedBurner has implemented support for this capability. Google is currently testing this program with just a few publishers, but as the program becomes more widely available, and your Google AdSense id is approved for use with RSS ads, FeedBurner will take care of the rest as part of our suite of services.”

          So it sounds like everything with AdSense in RSS is already taken care of; it’s just a matter of when/if Google plans to launch it.

          • That’s going to be very, very interesting. While I’m sure TLA’s offering is reasonable, nothing matches the advertisers that Google has in its pool.

          • Yep, I fully agree. Plus, sites with lower traffic amounts don’t even qualify for TLA’s Feedvertising program, so it’s not even a viable option for many folks to begin with. The smaller blogs that can definitely use that extra income stream lose out completely.

            But if Google monetizes the FeedBurner feeds with AdSense you can bet your boots that the smaller publishers won’t be left out.

            Needless to say, TLA will certainly have their hands full going against Google/FeedBurner in the RSS monetization arena. And I bet they’ll totally drop those traffic requirements too…just like Kontera did.

  3. Sometimes I shriek when Google buys companies. They are getting so big and powerful that they can control information. Also, the vast amount of data they own will allow them to spot trends and become even more powerful.

    On the flip side, products often improve once Google buys them.

  4. 100 million. I know my eyes are just open, but that can’t be right! That little website! Wow!

    Kenneth

  5. I wonder if that’s going to change how we implement our feeds.

  6. Google will run our lives soon…thanks!

  7. $10 million to $100 million in 4 years – not a bad return indeed. I see more of these buyouts happening as the major players jockey for position.

    I suspect the reason Google did it is because people are probably clicking less-and-less on Adsense ads than before. Adsense ads are almost too pervasive. I think many are suffering from “Adsense overload” and probably ignore the ads the great majority of the time. I, for one, can’t remember the last time I clicked on an Adsense ad (or Adwords for that matter).

  8. uf...

    its getting sad seeing all the news here as re-writes of techcrunch, problogger etc. no offence, but I get opinion that its true what they say about china people and their lack of originality. you guys are best at copying stuff, and making it less expensive with your cheap work-force. no wonder you’re gonna take on the world… I see more and more Chinamen illegally in my country taking jobs from local people, just because they are prepared to work 22 hours a day for 2$… did you guys ever invent something, except modifying better existing inventions and making them cheaper?

  9. They are borgs… :evil:

  10. why couldn’t you just keep focus on the topic? oh please… all people know, only jealous people say that :cool:

  11. Yep Google is the new MS….thats a really good buy !!

  12. I still can’t get over the Google workplace. During lunch breaks they get spa treatments and meet with their personal trainer. After the break, they find online ventures they can buy off. :cool:

  13. its interesting that its an all cash deal.
    YouTube was an all stock deal. Did the Feedburner founders play hard ball in order to get cold hard cash?

  14. The interesting thing is the whole Adsense for feeds. What would happen if your blog was scraped? Would you not mind as your adsense would be displayed? Or would they generate invalid clicks, thus shutting your programme down when it really isn’t your fault? Only time will tell whether this is a good move or a disaster.

    • That’s probably why they’re testing it out with select publishers first. Hopefully they’ll iron all of that out. Scrapers could bypass showing our ads if they wanted to without any trouble at all so we won’t get that windfall.

  15. I wonder when Google will buy a phone company and TV network?

  16. I say congrats to them feedburner for making the money but google.. I SAY NO SOUP FOR YOU!

  17. gaskin

    better google than microsoft…

  18. Is this everyone’s feedburner chicklets are currently MIA? :mad:

  19. Feedburner, hell yeah! A Chicago-based company.

  20. At least Feedburner still has its ‘cool web startup’ status. Google is on its way to losing theirs.

  21. Google buys and gets bigger and bigger. Yahoo and MSN buy and try to catch up. Do you think that with the growing anti-google sentiment and with the recent purchases by Yahoo and MSN of companies that will help them, that maybe we should look at optimizing our content for Yahoo and MSN instead of Google? It is kind of like the rabbit and the hare. Google is the rabbit and has been going like a bat out of hell for the last 7 years….but the old turtle Yahoo is still a powerful force and seems to keep a steady pace. What do you think? Does the future of Internet Search equal Yahoo plus MSN??

  22. When they gonna start Google Bank..get you GOOGLE VISA CARD Today!

  23. I love to hear things like this. One of my goals is to create a service that will be bought out for a huge some like this.

Trackbacks

  1. Google cumpără FeedBurner : eCostin.com - Caminando por la vida - May 23, 2007 at 6:01 pm
  2. Google-Feed Burns the Blogosphere » SELaplana - May 24, 2007 at 12:59 am
  3. Britt Malkas edb-blog » Blog Archive » Google køber FeedBurner for $100 mio. - May 24, 2007 at 5:22 am
  4. » Unbegrenztes Wachstum bei ungebremster Datenfülle – Google kauft Feedburner » sunblogger - notizen aus einer norddeutschen werbeagentur - May 25, 2007 at 4:23 am