Money-Losing Santa Monica Web Firm Hits Jackpot

Today at the CBS upfronts in New York, Two and a Half Men sub Ashton Kutcher told the assembled crowd that people have been reacting to the news of his hiring as if he had won the lotto.

The folks at Santa Monica Internet advertising firm 5to1 must be feeling the same way. Despite the fact that the company last year lost the equivalent of what Kutcher will receive for nine episodes of work, it has been acquired by Yahoo! for $28 million.

Founded in 2008, the 19-employee firm has never turned a profit. In spite of that, one of the Fox Interactive Media guys who sits atop the executive food chain at 5to1, Peter Foster, carries the title of Chief Revenue Officer. Must be a short work day.

It’s all part of that wonderful, fuzzy Wall Street math that helps the rich get richer while leaving the poor to wade through banner ads. 5to1’s proprietary software platform is designed to allow major media clients to get rid of unsold online ad inventory.