2 Comments

Summary:

When Steve Case’s internet payment startup Revolution Money raised a $42 million round last April from Goldman Sachs, Morgan Stanley and Cit…

Ted Leonsis
photo: Corbis

When Steve Case’s internet payment startup Revolution Money raised a $42 million round last April from Goldman Sachs, Morgan Stanley and Citigroup, Chairman Ted Leonsis said the company had no plans for a sale or IPO before 2011. Looks like the calendar pages — and the company — flipped a lot faster than Leonsis expected: Revolution Money just went to American Express for $300 million. In two disclosed rounds, the startup founded by Steve Case and his DC-based Revolution LLC in 2007, Revolution Money raised close to $100 million.

Writing about the sale on his own blog, Leonsis described Case and himself as “the most significant investors in this enterprise” and said he will work with AmEx as a special adviser on “overall digital and online payments strategy.” The post includes the formal deal announcement.

The deal is subject to the usual regulatory approval but they expect it to close in the first quarter of 2010.Revolution Money will be the first “component” of a new Enterprise Growth unit at AmEx. They plan to keep the team actually running it intact, including cofounder and CEO Jason Hogg.

You’re subscribed! If you like, you can update your settings

  1. Wow! With such dilution gotta feel for the employees. No way they could have made any money on this.

  2. This was a win-win for both parties.

    It would have been difficult for Revolution Money to take this service off because quite frankly, Steve Case and Ted Leonsis did not focus on the right audience. The right audience for this card would have been inner city/people of color who are now using prepaid debit.

    American Express will be able to better distribute this card to the right channels to a demographic that NEEDS this card, not want this card. AMEX got a good deal and can put this to the markets that matter.

    AMEX came out on top with this…

Comments have been disabled for this post