Women’s Category Leader in the U.S. Plans Global Expansion with a Landmark Investment from Hubert Burda Media, GLG, DAG and Other Major Investors
BRISBANE, CA and NEW YORK, NY—February 25, 2008—Mode Media Corporation. (corp.mode.com), number one in reach for women online, announced today the closing of $84.6 million in private financing, with $64.6 million in Series D funding and $20 million in revenue-based debt financing. Proceeds of the financing will be used to accelerate the growth of the company’s distributed media network that connects premium brand display advertisers with online audiences worldwide. The equity-financing round is led by Hubert Burda Media, an international media powerhouse and publisher of more than 260 magazines titles and an investor in more than 25 high-growth digital holdings.
Other investors for the round include: GLG Partners, a leading alternative asset manager; Duff Ackerman & Goodrich Ventures (DAG), a leading crossover fund with a rich history in Internet and TV networks; and existing investors Accel Partners, Draper Fisher Jurvetson, Walden Ventures and Information Capital. Hercules Technology Growth Capital, a leading provider of debt and equity capital, will provide the debt financing.
The new funding will fuel Mode Media’s aggressive global expansion in 2008 across new territories and categories, focusing on transforming brand display advertising on the Web as the market shifts away from the dominance of portals and destination sites to the distributed media network model that Mode Media helped pioneer. The funding will also be used to make strategic acquisitions, invest in technology to grow the distributed media model and further global growth.
Christiane zu Salm, who joins the executive management board of Hubert Burda Media in April 2008, will join the Mode Media Board of Directors as an observer. Ms. zu Salm was founder of interactive TV network Neun Live and formerly managing director of MTV Central Europe. Dr. Marcel Reichart, managing director of Research & Development, Marketing and Communications at Burda, and co-founder of the prestigious DLD conference, will oversee the relationship between Burda and Glam. In a separate announcement today, Glam unveiled its rollout in key international markets starting in the United Kingdom, where Glam along with its publishers is already number one in audience reach, ahead of long established media companies including iVillage and CondeNet.
“Mode Media is well positioned to enable global brand advertisers via their distributed media network model,” said Dr. Marcel Reichart of Hubert Burda Media. “The investment by Burda leverages our strong position in women and lifestyle media brands and further enables our transformation towards digital media.”
“Mode Media is ideally situated as an influential player in the emerging global digital media landscape,” said Samir Arora, chairman and CEO of Mode Media. “In 2007, Mode Media was the fastest-growing in comScore Media Metrix Top 50 properties, becoming the number one women’s property on the Web in the U.S. with unprecedented speed. With fragmentation increasing on the Web, our proven distributed media network model both supports our key publishers and is the optimal way to bring premium brand display advertisers to the Web.”
Bank of America Securities and Allen & Company served as the lead placement agents, with Deutsche Bank as a participating investment bank helping in the placement of this round.
Mode Media continues to experience significant growth both in traffic to Glam-owned-and -operated properties and via the reach of its publisher network of 450+ lifestyle websites and blogs. Recent strategic hires—including senior sales executive John Trimble from Fox Interactive, former Yahoo! Smart Ads platform executive Dr. Kiumarse Zamanian and Joe Lagani, former Conde Nast publisher—further position the company to take advantage of the market focus and demand for premium brand display advertising.
Mode Media’s distributed media network currently includes Style, Living, Entertainment, Wellness and Shopping channels. Each channel brings together a blend of original editorial, syndicated and media partner content and curated content from the 450+ sites in the Glam Publisher Network. Mode Media provides media services—display and video advertising, content syndication, advertorials, search and other application services to its highly select network of publishers and managed vertical networks for traditional media companies. Mode Media’s pioneering distributed media model has helped hundreds of publishers start and build their businesses by helping them focus on what they love doing the most—creating original content and engaging their audience—while Mode Media creates the “ecosystem” that helps support and leverage the publishers’ power for advertisers worldwide.
About Hubert Burda Media
Hubert Burda Media is a $2.4 billion in revenue international media group with more than 7,000 employees that first entered the market more than 100 hundred years ago. Today, the company’s portfolio comprises more than 260 magazines worldwide, over 25 digital holdings, radio networks and television productions as well as media sales, printing and direct marketing operations.
About Mode Media
Mode Media’s distributed media network model is revolutionizing the very definition of what a media company is in the 21st Century. With 44 million global unique monthly visitors (comScore MediaMetrix), Mode Media provides a compelling mix of fresh, original content created in-house with a carefully curated Glam Publishing Network of more than 450 popular and influential lifestyle websites, blogs and magazines. For premium national brand advertisers, Mode Media offers an unprecedented array of targeted options that are singularly attractive to both upscale and aspirational consumers.