Om Malik, the head of the Giga Omni Media group of tech blogs, said on Friday he is moving his ad business from John Battelle's Federated Media to a new advertising network IDG launched in March.
The companies, which have partnered for three years (and weathered differences of opinion involving a scandal over "conversational marketing" in which the writing of Malik, Battelle, and other bloggers was featured in ads for Microsoft), are splitting amicably. They are characterizing the move as them having grown in different directions, according to Malik and Federated Media Publisher Chas Edwards.
Giga Omni Media's seven Web sites are small vertical sites, which are more suited for a company with a trade publishing background like IDG, Edwards said in an interview.
Meanwhile, "the Federated Media approach is the Conde Nast or Time Inc. approach, (working with) larger brands, fewer of them, and national and global advertisers," he said. "Our model has not been well-suited to take those smaller sites where they wanted to go.
"I think it's actually a wonderful move for Om and, frankly, for Federated Media," Edwards added.
In a blog posting, Malik explained the situation like this:
"Progress is often accompanied by a divergence of ideas and ambitions within partnerships. At Giga Omni Media, we have been developing a network that revolves around niche verticals. As our needs became more specialized, we sat down with the folks at Federated to try and figure out how we could continue to work together. But both sides quickly realized that instead it was time to wrap up what has been a successful business relationship."
The situation is completely different from the circumstances that led to news aggregator Digg to switch from Federated Media to Microsoft for its advertising last year. While Microsoft serves up the contextual and display ads on Digg, Federated Media handles the sponsorships, including some banner ads, Edwards said.
Giga Omni Media founder Om Malik has penned a new chapter to life, adding the role of venture partner to the mix.
Malik, who recently transferred the CEO role of his company to Paul Walborsky, has signed on as a venture partner at True Ventures, a firm that is an investor in Giga.
Om Malik kicks off GigaOM's Structure event in June, which centered on the massive build-out of infrastructure to power the wired planet.
(Credit: Dan Farber)In a a blog post, Malik notes that he will continue to write about issues he holds dear from major technology trends to the underpinnings of the Internet. But, he notes, by signing on as a partner with True Ventures, he'll also have a front-row seat in learning about the VC business and may one day venture out as a full-fledged venture capitalist.
In an interview with The New York Times, Malik said his part-time role will include offering up advice to the firm's portfolio companies and sharing his opinions with the other partners at True Ventures.
And while the article raises questions about potential conflicts of interest that could arise as Malik covers the VC industry and its start-ups, while also being a member of the club, Malik notes that he will not pen any articles about companies in True Venture's portfolio. He adds that disclosures will be made of the True Ventures relationship, should any Giga writers make reference to any of the firm's portfolio companies.
That's otherwise known as keeping the aim true.
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