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Monday, June 9, 2008

RockYou Widget Builder Gets $35M In Funding

It seems investors have been reading the National Retail Organization’s suggestion that 55% of e-tailers want to focus more of their marketing dollars on widgets.

After recently banking $50 million on widget maker Slide, VCs are back, this time investing $35 million in rival RockYou.

The $35 million likely brings RockYou’s valuation under fellow widget maker Slide’s, which was $550 million in its last $50 million round from two private equity funds. It’s also less than a reported $50-$70 million on a $400 million valuation that RockYou was supposedly seeking. An insider spun this difference in valuation with Slide as a positive thing, though, telling us it would make RockYou a more digestible acquisition target.

$550 million valuation for a widget builder? With widgets still somewhat unproven as a marketing channel, could this be a bubble? Have you had success marketing with widgets? Leave a comment. Thanks!

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About the author:
Andy Beal is an internet marketing consultant and considered one of the world's most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.

You can read his internet marketing blog at Marketing Pilgrim and reach him at andy.beal@gmail.com.
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