Softbank Capital invests $5 mln in Huffington Post

[Rose Siding]

NEW YORK (Reuters) - The Huffington Post, an online news and blogging site run by political commentator Arianna Huffington, said on Monday that it has received a $5 million investment led by venture capital firm SoftBank Capital to help it expand.

The investment marks the site's first round of venture capital funding. Alan Patricof's Greycroft Partners also invested in the latest round, the Huffington Post said in a statement.

...

Plans include hiring staff to update the site 24 hours a day, and hiring in-house reporters as well as multimedia staff to do video reports, Huffington said.

The investment is the latest sign of interest in online news operations as traditional media fight to hold on to their viewers, readers and advertising dollars amid blogs, Internet-only news and other free options.

http://go.reuters.com/newsArticle.jhtml?type=politicsNews&storyID=13109432&src=rss/ElectionCoverage

[hlthe2b]

1. wow.....

Sign that blogs are coming of age?

[onehandle]

2. Nobody will invest five dollars in Daryl Kagan's blogging site.

She'll be Rush's Viagra buddy again in no time.

[itzamirakul]

3. But then you wonder what changes this new money will cause in

the website. The corporate dollars can force a more favorable opinion on the part of Huff if the money providers demand it. Some of the independence is lost and it becomes more of the msm.

With the success that it has had as the size that it is...the question is...what is the need for change?
To reach more people? To add fresh news every 15 minutes? Haven't they been doing that?

The $5 mill can just be a good payment for the current execs.

[Tace]

4. I Agree With You

I'm a news entrepreneur who has been around the block a few times with venture capital firms. While, at first, this seems really cool for Ariana and Huffington, really they've sold their souls to the money men. That's my perspective, anyway. Maybe just sour grapes on my part.

The thing is that Huffington's business model provides plenty of cash flow to bootstrap. I don't get it either.

[gulfcoastliberal]

6. My FIL is a venture capitalist...

So Arianna has given up equity - probably a lot. My FIL invests in polymers and scientific companies, so I don't know how it works in media. But the idea is the investment is seed money so their equity stake appreciates lots and lots. The venture firm will likely control the board of directors and direct the business plan. How that will change the site is anyones guess. It might not be bad. If you haven't noticed, since the installation of Bush, anti-shrub business has boomed. I guess that must be the basis for Bushco saying the economy is strong. It's the anti-Bush economy, stupid shrub.

[Kagemusha]

5. This is what SoftBank does. Was set up to get around fossilized banks

Good luck to everyone involved.

[WhiteTara]

7. great! I have been concerned about how

we would get news. This is wonderful. Go Arianna.

[Stockholm]

8. The obvious question is what is SoftBank Capital

Who owns it and what are their agenda? I suspect Mrs. Huffington have vetted them carefully before letting them in but it will be interesting to watch for changes in the content of the site.