Mail.com Media Corp., an El Segundo, Calif.-based operator of digital media portals, has raised $35 million in Series D funding at a pre-money valuation of approximately $109 million. Quadrangle Capital Partners, an affiliate of Quadrangle Group, led the round, and was joined by WI Harper Group and Novel TMT Ventures.
Mail.com Media Corporation (“Mail.com”), a leading digital media company that owns and operates the Mail.com portal and a growing number of content destinations today announced that is has completed a $35 million round of financing, which was led by Quadrangle Capital Partners (“Quadrangle”), an affiliate of private investment firm Quadrangle Group. The transaction, which closed on September 8, 2008, was financed through newly issued preferred stock.
The proceeds from the financing will provide capital to further accelerate Mail.com’s growth, including initiatives such as content creation, vertical site development, selective acquisitions and new management hires. Daniel Rosensweig, Operating Principal at Quadrangle, and Andrew Frey, a Principal, will join Mail.com’s board of directors. Mr. Rosensweig leads Quadrangle’s Silicon Valley office, and formerly served as Chief Operating Officer of Yahoo! (Nasdaq: YHOO), where he was responsible for product development, marketing, international operations, and North American operations.
Mail.com provides free web-based email services to over two million users, and has the exclusive ability to offer over 400 specialty email addresses like [email protected]. The Mail.com portal is a content distribution platform that partners with leading content publishers. The company also operates a series of leading vertical content destination sites such as HollywoodLife and OnCars.com. Founded in the late-1990s, Mail.com was re-launched by founder and current CEO Jay Penske in May of 2007.
Mr. Penske said, “We look forward to welcoming Quadrangle as a valuable partner in Mail.com, and Andrew and Dan to our board of directors. Quadrangle’s sector experience, internet expertise and extensive network of relationships will provide meaningful benefits to Mail.com as we continue to broaden our portfolio of brands, and accelerate the growth of our company.”
Mr. Rosensweig said, “Mail.com is a profitable, rapidly growing business with a strong management team and attractive products. We look forward to working with Jay and his team to accelerate the company’s development. This transaction is consistent with Quadrangle’s strategy of investing in media and communications companies with high growth potential and demonstrates the quality of opportunities we are able to capitalize on now that we have a solid presence in Silicon Valley.”
About Quadrangle Group LLC
Quadrangle Group LLC is a private investment firm with more than $6 billion of assets under management. Quadrangle invests in media and communications companies through separate private and public investment strategies and across all asset classes through its asset management business. All investment strategies seek to maximize value by leveraging the investment team’s extensive experience, knowledge and industry relationships. Quadrangle has offices in New York, London, Hong Kong and Silicon Valley. For more information, please visit http://www.quadranglegroup.com.
Mail.com Media Corporation (MMC) is a leading digital media company that owns and operates the Mail.com portal and a growing number of essential online content destinations. The company also provides a suite of private-label services to consumers through its relationships with top content brands and their websites.