Just a week after NBC lays off some employees at iVillage, competitor Glam Media announces a massive - and I mean massive - $84.6M funding round, of which $20M is debt financing.
What’s interesting here is that 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 - led the equity-financing round.
Men have turned to the Web and gaming, for sure, but that is not the case for women. In fact, while magazine advertising and print advertising in general is facing a slowdown, the women’s magazine market remains fairly robust. But long term, the women advertising market and publishing segment will face many of the systematic trends facing all magazines.
Strategic investors usually invest when there is a clear cost-benefit value to them doing so, I estimate that Hubert Burda Media isn’t looking for a flip, but a potential acquisition of Glam Media down the road.
It’s also interesting to note that while US financial players have gotten nailed in the past 6 months, it’s not surprising to see a European giant lead the charge… and funding.
Obviously the press release doesn’t mention this, but Paid Content is reporting the deal was at a $500M valuation, not sure if they mean pre-money or post-money. The company is aiming for $100M in 2008 revenues.
Disclaimer: Glam Media is a distribution partner of WatchMojo.com.
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