Kara Fisher reported on Boomtown earlier today that paidContent, a digital news media site, was acquired by Guardian Media Group for over $30 million. You can catch a video below with Kara interviewing founder of ContentNext - Rafat Ali, which is the parent company of paidContent.
In the interview Ali talks about where he thinks the future of blogging and online news is going ... or needs to go.
Contrary to many people talking about the online news arena, Ali does mention something a little surprising to me, in saying that scaling a company online does matter. That contradicts a lot of those that promote a much different online business viewpoint.
It also surprised me that a site like TechCrunch didn't go before paidContent, but having a fairly good handle on British media, I can see why they picked the more unpretentious paidContent over TechCrunch or others.
Kara Fisher Interview with Rafat Ali
Will this trigger a battle to gather up online media companies reporting on tech news? It's quite possible, as there's been a lot of chatter about many of the more well-known online companies being approached by big media recently.
Ali, among other things, does think concerning online tech media that there will be an inevitable consolidation going forward as the market matures.
While that's a real possibility, it does generate the question of media independence and coverage becoming increasing dependent and mainstream. If so, it could create another online revolution where more independent-minded writers emerge to challenge the "old" guard.
It's sure interesting online times in contrast to even just a couple years ago, when something like this happening would have been considered anathema by bloggers and online writers. Now it's considered a triumph rather than a sellout; something it would have been considered then.
I think what's happening is the reality is hitting many people about the need to have a business model and generate revenue. You can only survive so long without one, as many are finding out.
As far as this deal goes, Ali said it only took about two weeks to conclude, and includes performance incentives to reach the over $30 million price.
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