AllThingsD » Betsy Morgan

BoomTown Interviews Arianna, Ken and Eric About Huffington Post Exec Changes: BAM!!

Kara Swisher — Tue, 16 Jun 2009 01:18:43 +0000

Apparently, if you want to think about the growth of the Huffington Post as a culinary dish, perhaps today’s replacement of CEO Betsy Morgan with longtime online media powerhouse Eric Hippeau might appear under the Emeril Lagasse cooking cliché: Let’s kick it up a notch!

Both co-founders of the online media site, Arianna Huffington and Kenneth Lerer, said as much in interviews I did with them this afternoon, after news of the change got out–even as they praised Morgan for the strong work she had done in the 18 months she had been in charge.

“The deal is that we simply have been growing so fast that we needed more firepower to accelerate in expanding the site and monetizing it,” said Huffington, who is also editor-in-chief of the Web news site (and pictured above).

“Things are going great, but things could be going even greater,” added Lerer, who is chairman of the Huffington Post, noting that a more experienced exec was needed at this juncture to take the business to the next level.

“Eric is a peer at all the big companies we need to partner and deal with…and right now, while things are difficult in the economy, is the time when you can really build a company and we had to take advantage of that opportunity.”

So, ipso facto, Morgan was out in favor of Hippeau, who was the key player in the $5 million investment in the Huffington Post by SoftBank Capital in 2006.

Hippeau is a director on its small board, which also includes Huffington, Lerer and Oak Investment Partners’ Fred Harman. Morgan will be vacating her board seat.

Oak recently added $25 million to the funding kitty at the Huffington Post, money that Lerer and Huffington said had not been used yet.

But it soon will be, both noted, with the site expanding aggressively into the local arena, investigative news and verticals such as tech.

It is all being done to build on what has been a strong traffic year for the Huffington Post, which claims it has over 21 million unique monthly visitors.

Nielsen Online has pegged that at the lower figure of 8.9 million, but reported that the Huffington Post was one of the fastest-growing, year-over-year news sites.

Despite that, the site still has not been regularly profitable, said Huffington, despite doubling annual revenue–mostly in advertising–to what some estimate to be about $8 million in 2009.

Hippeau (pictured here) has a lot of experience working at a panoply of early online media businesses, including as CEO of Ziff-Davis.

He has also been a longtime Web investor, pushing for SoftBank’s early investment in Yahoo (YHOO), where Hippeau remains a board member.

That should not present a conflict for Yahoo, said Hippeau, which had a short-lived publishing partnership with the Huffington Post.

Hippeau, who has been a managing partner at SoftBank, will become a special partner and adviser to the investment firm. In this capacity, he will continue to work with three start-ups–Buddy Media, BuzzFeed and ThumbPlay.

Hippeau, who is now diving back into an operating role for the first time in almost a decade, said it was hard to pass up the chance to run the New York-based Huffington Post.

“I could not pass such an opportunity, especially with the explosion in the delivery of the news and opinion on the Web,” he said. “This is really the place to build the next really big brand.”

To get to that level, Hippeau said that a lot of things have to happen at the site going forward.

“Clearly we have got to make the revenues commensurate with traffic of the site and size of the opportunity,” he said. “At the same time, we have got to make sure we are very community-focused and using all kinds of new tools to increase engagement.”

Hippeau noted that journalism was changing radically, and “what people want to know is what are people thinking and how can I contribute and we are just at the beginning of this phase.”

Of particular interest to him are real-time data and real-time communications–on sites like Twitter–and the growth of smartphone usage.

“We are getting into a situation in the U.S., where it is so much easier to access all kinds of information and so much more portable,” said Hippeau. “Everyone has talked about convergence for a long time and it is finally here and we are poised to take great advantage of that.”

The moves at the Huffington Post were first reported by paidContent.org.

Huffington appeared onstage at the recent D: All Things Digital conference with Washington Post (WPO) publisher Katharine Weymouth.

Here is a highlights video of the interview I did with them:

[ See post to watch video ]

iPhone 3GS on the Way

John Paczkowski — Mon, 15 Jun 2009 18:53:05 +0000

[ See post to watch video ]

New York Times to the Web: Careful With Our Copy!

Peter Kafka — Mon, 02 Mar 2009 22:20:13 +0000

Early on in today’s well-written story about Web aggregators, New York Times reporter Brian Stelter notes that “some media executives are growing concerned that the increasingly popular curators of the Web that are taking large pieces of the original work…are shaving away potential readers and profiting from the content.” And he notes that “some publishers are second-guessing their liberal attitude toward free content.”

He’s right. But Stelter’s piece doesn’t mention one of the publishers that has been increasingly vocal about aggregators–his bosses at the New York Times.

Over the past few months, the paper has reached out several times to aggregators for a variety of offenses, and asked them to cut it out. To date, the Times hasn’t done anything more threatening than mailing a formal letter. But some other publishers, who see the Times as a leading voice for “old media” institutions on the Web, are hoping they might.

• In November, Times officials angrily complained to executives at the Huffington Post after that site republished a complicated graphic the paper had created for its coverage of the 2008 elections. HuffPo CEO Betsy Morgan says the issue was resolved, and that she considers the paper an “important partner.”

• The paper has also complained to Silicon Alley Insider editor Henry Blodget this year after he excerpted one of its stories at length. Blodget refers to the incident in a post he wrote today about the site’s excerpting policy: “We have been publishing for 20 months now–more than 25,000 posts–and we have been asked to shorten excerpts only twice. (We did so immediately.)” (Disclosure: I am a former employee of the site’s parent company, Silicon Alley Media, and own a small number of shares in the company.)

• In February, the Times complained to Michael Wolff’s Newser aggregator about the site’s use of a Times photo and its continued use of the paper’s iconic “T” to identify Times stories it summarizes. Wolff says he’ll stop using the logo if the paper insists.

Does any of this represent a concerted effort by the Times to dissuade sites from linking to and excerpting its copy? I asked spokeswoman Catherine Mathis this last week, and she demurred: “We are not taking a different stance toward aggregators,” she said, via email.

That hasn’t stopped other Web publishers from wishing the paper would do so. They’re hoping that the Times, which publishes the world’s best-read online newspaper, will somehow lead a charge to make it harder for aggregators to use their work.

Keep dreaming. Even if the Times wanted to do bottle up its content, it couldn’t–like it or not, information really does want to be free on the Web, no matter how much it costs to create it. And I get the impression that the paper’s executives, who are frequently lampooned as clueless dinosaurs who “don’t get” the complexities of the Web, understand that.

You can, however, effectively control how quickly the bulk of your proprietary stuff gets released to the public, if you really want to. That’s what The Wall Street Journal (owned by Dow Jones, the News Corp. property that also owns this site) has effectively done so far with its free/pay hybrid model. And the Times may one day try a version of that–again–itself.

Here's the Official HuffPost $25 Million Funding Press Release

Kara Swisher — Mon, 01 Dec 2008 12:06:09 +0000

Here’s the official press release from the popular news and blogging site, The Huffington Post, which announced $25 million in funding from Oak Investment Partners this morning.

(BoomTown’s story on the funding is here, along with an interview with Oak’s Fred Harman)

Sources told BoomTown the investment gives the site–which had 4.5 million unique visitors in September, a quadrupling from a year ago–a valuation of “south of $100 million.”

Here’s the official release:

The Huffington Post Announces $25 Million In Funding From Oak Investment Partners

New York, NY (December 1, 2008)–The Huffington Post, a leading news and opinion site, today announced that it has secured $25 million in funding from Oak Investment Partners, a venture capital firm based in Palo Alto, California. The Huffington Post (“HuffPost”) will use the proceeds to invest in the growth of the company and for select and focused acquisitions. The company said it would invest in its technology and infrastructure, increase its in-house advertising capabilities, and continue to expand its content offerings–including a new investigative journalism initiative and a rollout of local versions of The Huffington Post in select cities. The announcement was made by Arianna Huffington and Kenneth Lerer, co-founders of The Huffington Post.

“This commitment from Oak Investment Partners will allow us to accelerate our growth, with more verticals, more video, more citizen journalism initiatives, more cities for our local editions, and a fund for investigative journalism,” said Arianna Huffington. “We are particularly excited to have Fred Harman of Oak join our board; his deep knowledge of the new media landscape will help us to take HuffPost to the next level.”

Said Kenneth Lerer: “We are thrilled to bring on board a partner like Oak to work with Softbank Capital and Greycroft [Partners] as we move forward. Since launching the site three and half years ago, the company has built a strong brand and an audience of millions who rely on the site for its mix of smart news and opinion. The additional capital from Oak will enable us to go full-steam ahead with operations and select acquisitions.”

Fred Harman, general partner at Oak Investment Partners, said, “Much of the news media business needs to be reassembled online around an ad-supported model and the timetable for this has been accelerated, not slowed, by this economic down cycle. We believe that The Huffington Post has built a platform and business model to be among the leaders in aggregating this audience online. Our financing will provide the resources necessary to scale the company, both organically as well as through acquisitions of additional talent and new media companies. We are also very excited to have the opportunity to back Arianna, Betsy, and the company’s strong entrepreneurial team.”

Betsy Morgan, CEO of The Huffington Post, said, “With funding from Oak, The Huffington Post is perfectly positioned to build on its incredible growth. Oak brings to the table a team with enormous experience and insight, and we look forward to working with them to seize the opportunities ahead of us.”

The Series C financing round comes as The Huffington Post continues to experience significant growth following the expansion of the site in 2007, when HuffPost began rolling out a variety of new sections, including entertainment, politics, media, living, style and green. The site also started its first local version, HuffPost Chicago. This year, The Huffington Post received widespread attention for its original reporting on the 2008 presidential race, including the coverage provided by its OffTheBus team of citizen journalists. HuffPost currently has 46 employees.

Harman joins The Huffington Post board of directors, whose members include: Eric Hippeau, Managing Partner of Softbank Capital, Arianna Huffington, Kenneth Lerer and Betsy Morgan.