Facebook’s power as an advertising tool has not gone unnoticed. Buddy Media, a firm that assists advertisers in managing their Facebook presence, is now valued at $500 million. The half-billion-dollar figure is the product of the company’s most recent financing round, which garnered them $54 million from investors such as Institutional Venture Partners and Insight Venture Partners.
Instead of inflating employee salaries or investor portfolios, the new round of financing will instead be used to expand, according to Buddy Media CEO Mike Lazerow. He says the company has plans to expand in Europe and double its work force. The software that Buddy Media sells to advertisers can be used for other social media sites; however, the bulk of its business comes from those who want to manage their Facebook presence, including buying ads from Facebook.
Buddy Media’s success and close linkage with the social media giant make them a target for acquisition. However, All Things Digital’s Peter Kafka reports that Lazerow has no intention of selling. “We feel like we can be a very large independent business, so why not scale the business today and build it up?” Lazerow said.