Blog Post

Rollup Plays in RSS World

With NewsGator buying FeedDemon, announced last night, the field is seeing the first signs of a shakeout. Developing a feedreader is a one-programmer play, but developing a good newsreader is as difficult as developing a good browser. Content interface matters, as do other front-end tools, but what is increasingly becoming important is how do metrics get reported, how does optimization happen on the backend, how well do you inter-operate with other newsreaders in the universe, etc.

And the Newsgator roll-up play is the first in many such M&As you’ll see in the coming months. Newsgator itself will devour some more. So will bigger players like Bloglines, and many others…

These will be small fish for some of the investment bankers for now, but it is good to jump in early…

Dave Winer mentioned some of the rollups possible, here..

Also, VC Fred Wilson has some very similar thoughts on rollup plays: Mobius Venture Partners, which is an investor in NewsGator, is driving the roll-up in this case…”It appears that Brad [Feld at Mobius] is convinced the team at Newsgator to do a venture rollup. Its a smart play because the big guys have figured out how important RSS is and are coming after the early entrants.”