Blogging platform Six Apart and ad network VideoEgg are nearing an agreement on a merger, according to an industry source and a separate source close to VideoEgg investors
rumours of a Six Apart acquisition began swirling yesterday. Our sources suggest that Six Apart and VideoEgg will merge and that Six Apart will come away with 25% of the new company.
Since acquiring Apperceptive in 2008, Six Apart has increasingly become a resource for monetizing blogs, rather than a blogging platform in its own right. VideoEgg, which started as a YouTube-clone, has taken a similar path to become a “media network.” (It looks a lot like an ad network to us).
The company shares investors and two board members, August Capital’s David Hornik and Focus Ventures’ Steven Bird.
Says a source, “Six Apart is hosed, so they are screwing [VideoEgg] by making them buy Six Apart – and [thereby] diluting [VideoEgg] shareholders.”
“Venture Capital at its worst in my humble opinion.”
Six Apart CEO Chris Alden has flatly denied that his company has been acquired, or that it is in the process of a merger.
VideoEgg CEO Matthew Sanchez told us: “We don’t comment on those kinds of rumours.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.