Technorati to Launch Blog Ad Network?
Through a variety of sources we’ve confirmed that Technorati is making plans for a major shift in it’s going forward strategy, and is also considering a number of corporate development transactions.
First, they’ve been pitching venture capitalists on another round of financing. That’s not surprising – their last round, $10.5 million, was in June 2006. The company has raised a total of just over $20 million, and given that they have 25 employees, it’s time for another round. But we’ve also heard that they’ve hired Montgomery & Co. to shop the company to buyers, simultaneous to their funding pitches.
If this turns out to be true, it would be an interesting development and probably a smart move by Technorati. Technorati has been through some tough times lately and none of their new products were very useful and/or gathered much mindshare. And even their old core business of blog search is not getting much attention anymore.
As a blog search engine, Technorati has clearly lost market share to Google’s blog search, but it does sit upon a wealth of information. As Michael Arrington rightly points out in his post, Technorati tags are still being used by pretty much every blogger and they would be a great way for Technorati to target ads.