Redpoint Ventures is the latest VC firm to profit nicely from media acquirers’ seemingly bottomless appetite for digital advertising assets.
The Silicon Valley firm is the sole venture stakeholder in Right Media, the developer of an exchange for buying online ads that just sold its remaining shares to Yahoo for approximately $680 million in cash and stock. Over the past two years, Redpoint has invested just under $17 million in Manhattan-based Right Media, beginning with a $12 million round in April, 2005.
“It’s definitely a good outcome,” said Chris Moore, a Redpoint partner and Right Media board member, regarding the acquisition. He declined to specify the size of Redpoint’s stake in the company.
Right Media’s value on the M&A market appears to have skyrocketed in the course of just a few months. Yahoo purchased 20% of the company in October for $40 million in a $45 million in Series B financing round that also included Redpoint Ventures. On Monday, Yahoo said it will pay an estimated $680 million for the remaining 80% – implying a valuation more than four times greater than just six months ago.