Today marks a big milestone for Federated Media, the company we launched way back in 2005. As you can read here, LIN Media is acquiring Federated Media’s brand and content marketing business, and a new company, sovrn Holdings, Inc. (“sovrn”), has been born. Sovrn will continue to build on what was FM’s programmatic publisher platform, a business based on our acquisition of Lijit Networks back in 2011.
When I returned as FM’s CEO in early 2013 after a two-year absence, it was my job to assess where we stood, and how we could most successfully invest our resources. At the time, FM had two distinct business lines: Its pioneering content marketing practice, and its burgeoning programmatic exchange. As readers of this site know well, I’m bullish on both. I love our legacy as one of the creators of modern content marketing and defender of premium independent publishing, and I’m extremely proud of our massive exchange, which is growing like crazy (more than 90% topline growth y/y, and profitable). Both businesses have strong partners, strong people, and great futures.
So why split them up? Well, the truth is LIN Media offered us a deal that just made sense. LIN, a public company, is focused on building a world-class digital media offering, and has the resources and people that can take Federated’s business to the next level. It’s incredibly important to me personally that something I was instrumental in building finds a home that respects and appreciates its history, while at the same time desiring to invest in its future. That’s exactly what LIN is committed to doing. Now that it is part of LIN, the Federated Media brand can grow faster – and that means more revenue and opportunities for the partners who have made FM what it is.
Meanwhile, our programmatic business has been growing so fast that it demands the focused attention of its executives, as well as more investment – the opportunity is tremendous. This transaction with LIN will allow the new company – sovrn – to pursue its dream of building a next-generation publisher-facing programmatic platform leveraging all the data and insights we’ve gained over the past few years.
Personally, this deal means I will be stepping back into the role I had in 2011 and 2012, but now as Executive Chair of sovrn. (Yes, that means I can once again focus on writing, among other things!) Walter Knapp, my COO and the leader of our programmatic business, is stepping into the role of CEO of sovrn. It’s been an honor to work side by side with Walter over the past year, he’s incredibly talented and deeply passionate. I know with him at the helm, sovrn is going to do extraordinary things.
And for Federated Media, the same team – all of them – who have been running our award-winning content marketing business will remain with Federated, and continue to work with our great publishing and marketing partners to power the best of the independent web. Chris Eberle, a wonderful and talented exec who I put in charge of the content marketing business last year, continues as Federated’s GM. And I’ll be working with LIN and Federated in various ways during the transition as well.
I’ve seen a lot of ups and downs in my nearly 30 years working in this business, but I can honestly say that this deal feels special. I left Wired before it was sold to Conde Nast and Lycos, so I didn’t experience that transition. At the Industry Standard, well, I stayed till the bitter end, but the company didn’t make it – that story’s best told over a whisky. With the Web 2 conferences, I made the choice to stop even though the business was doing fine – a personal decision that allowed me to focus on FM and writing. But with FM, the circle has been completed – FM is moving on to a new chapter, with new leaders and owners, nearly nine years after its first steps.
A couple of months ago my first child was admitted into the college of his choice, and in June we’ll be watching him leave the nest and explore new worlds. It’s bittersweet and emotional. I feel similarly about Federated – it’s time to help something I started head out into the world and into its next home. I’m thrilled that that home is LIN, a company whose people I’ve come to know and deeply respect. And I want everyone involved with FM to know I’ll always be there if they need advice and support.
So, onwards! Here’s to a remarkable nine years with Federated, and here’s to the future of both Federated Media and sovrn, the company it helped to create.