Blog Post

Glam Media Close To Finishing Its $50-100M Equity Raise; May Phase The Rest of $100M In

Ah, such is a reporter’s life: a story I had been working on for at least two weeks, spoke to multiple sources, did a lot of legwork, and then it gets leaked to Valleywag, though there’s a bit more to it than is there. Glam Media, the high-profile and controversial online ad network, had started raising a total of $200 million last year, with the plans for $100 million in equity raise, and $100 million in debt. Some leaks came out on Techcrunch last year.

Now, the company is finally close to closing its equity round, though we have heard from a source that the amount has come down, and could now range anywhere between $50 million to $100 million, and may be closer to the former…multiple syndicates are still looking at the options, and an announcement could come later next month. The valuation hopes of the company may have come down, as the Valleywag piece points out. Allen & Co. and other banks were working on the deal.

What may NOT happen immediately: the $100 million debt raise, from what we hear. It may be phased in later, but nothing imminent.

Meanwhile, the company has expanded recently beyond its main focus on fashion sites, and is now working on women, entertainment and other verticals, mainly as an enhanced ad network. It has made a number of senior hires, brought in from traditional media companies.

3 Responses to “Glam Media Close To Finishing Its $50-100M Equity Raise; May Phase The Rest of $100M In”

  1. I read Valleywag's piece and as a competing network I think their credibility is zero and Venturebeat just confirmed that they have no idea what they are talking about.

    I am a one of Glam’s Bloggers and I think it is great that they are finalizing their funding. I have seen quite a bit of misinformation out there and it is time someone set guys like Valleywag straight. As far as I know Glam has never claimed that they wanted $200 million in equity, a claim I just read on Valleywag.
    I am a premium Glam partner who just signed an exclusive deal with them for the SECOND time. I trust Glam as a long term partner and I suspect Gawker's Media motivations in trying to discredit Glam. Are they afraid of the competition?

  2. Owen story is not correct as an owner of a competing network. Sounds like Glam is on track and is successful and this would be considered a strong win.

    "Some reports suggest that Glam has sought to raise money at a near $1 billion valuation, but our sources have never confirmed that figure. We’re hearing Glam consistently got feedback during fundraising that it could raise money at a value of between $350 and $500 million, not more."

    "One reason for the excitement around Glam is its sector’s growth. Women’s sites, along with politics, was the fastest growing audience categories in 2007, according to Comscore. And here Glam has doing better than the norm. Glam grew at 213 percent, while iVillage grew at 27 percent –again, that is, if you include both Glam’s and iVillage’s directly owned sites as well as their ad partner network sites."

    "IGN, a men’s/gaming site comparable to Glam in size, was purchased by Fox for $650 million in 2005)."

    http://venturebeat.com/2008/01/31/glam-still-raising-up-to-200-in-cash-and-debt-announcement-coming-soon/

  3. If you look at my comments from a few months back I said that their CEO has "zero" credibility. This now proves the case — bag of wind that he is came up very short of his goal? Why is that? My guess is that he got spanked by the market, and in such a public way — why? Because he has a BIG mouth!