Update: Jan 28, 2010: The total investment for the major stake is about $4 million, according to an SEC filing by Loud3r.
It is the year of low-cost content creators and aggregators. In that vein, Loud3r, a company that had to reboot earlier this year after some early missteps, has now raised a “multi-million” dollar round from a non-traditional investor: the New York Daily News, owned by Mort Zuckerman, we have learned and confirmed. In return, NYDN has taken a “major” stake in the company, the source says, though not majority.
Loud3r, which launched mid last year, was founded by Lowell Goss, former SVP at iFilm/*MTV Networks*, and has Mika Salmi, former head of Viacom’s digital efforts, as an advisor. Earlier this year the Pasadena, CA-based company raised less than $1 million, with investment from domain name media firm NameMedia, which has also been using Loud3r’s technology on its large network of sites.
As the cheap and evergreen content production sector heats up, with companies like Demand Media, Associated, and even *AOL* (through Sphere) and Hearst (through LMK) jumping into the game, a company like Loud3r, which initially focused on creating its own news destinations, is now banking on providing its aggregation tech to publishers. With this in mind, likely NYDN will roll out its own verticals on its recently redesigned website. Loud3r is competing on the tech side with lots of aggregation service companies like OneSpot (which we use for a module on our sites), OutBrain, AggregateKnowledge, Inform.com, Daylife (though each have different spins) and Hearst’s LMK has said it may offer the technology to other publishers down the line.
Will an investment such as this lead to other news orgs looking at buying or taking stakes in such services? Interestingly we’ll have a superpanel on the topic of these low cost content creators and superdistributors at our upcoming paidContent2010 conference in NYC, where we plan to have top execs from the companies mentioned above discuss the genesis of the industry, tech, revenue models, and the future.