Yahoo is likely to acquire advertising platform 5:1 in a $30 million sale, according to TechCrunch’s Michael Arrington. 5:1 launched in 2009 and has raised around $13 million in funding.
Yahoo’s evp Americas Ross Levinsohn was a co-founder of 5:1, as well as a former board member and shareholder. (He cut ties with the company when he joined Yahoo.) Levinsohn worked with fellow co-founder and CEO of 5:1, Jim Heckman, at Fox Interactive Media. Arrington calls the acquisition a case of "getting the band back together." Levinsohn and Heckman—as well as 5:1 CRO Peter Foster, CFO Mitchell Chun, evp John Smelzer, and COO Mark Stieglitz—were all part of the Fox Interactive team that oversaw MySpace in its heyday.
According to insiders, 5:1 has signed contracts with around 25 media companies to reach 200 million people. "5:1 effectively hasn’t launched, yet they’ve been focused on putting together a massive inventory syndicate," one source told Arrington. "Yahoo basically gets to add their own inventory and launch the platform with all of these inventory partners to Yahoo’s existing advertisers."