Buzznet Gets Investment From Interscope-Universal Music; Buys Stereogum; Acquisitions Coming?
This story was written by Rafat Ali.
Pop culture-focused social media site Buzznet, based in Los Angeles, has raised a big-ish third round of funding, as much as $25 million, we have learned, and that Universal Music-owned Interscope has invested a few million in it. We haven't been able to confirm the other investors, but last year the company raised about $6 million led by Redpoint Ventures and Anthem Venture Partners. The previous investors might have put some of the new money as well.
The site's primary focus is on music and offers related blogs, videos, photo-sharing and band-related features. In particular, Buzznet has struck alliances with indie bands by promoting specific online community channels for them. The company has also been working with established popstars, like Avril Lavigne.
Also, recently, investors Bob Pittman, of the Pilot Group and Sling Media's Jason Hirschhorn traded their equity stakes in the influential indie music blog Stereogum for an ownership percentage of BuzzNet. We have confirmed through sources that Buzznet now fully owns Stereogum. Not sure how this plays into the new funding, but the financing may be used in making some other music and entertainment related content acquisitions and possibly rollups, our sources say.
By Rafat Ali