CLICK HERE TO RETURN TO SARAPEPITONE.com HOME PAGE
MaMaMedia Raises $50 Mln for Children's Education Web Site
New York, Nov. 11 (Bloomberg)-- MamaMedia, Inc., which runs five Web sites and publishes a magazine to teach children how use the Internet to learn, said it raised $50 million in a private equity sale.
The New York-based company, which is planning to sell shares to the public in the first half of next year, said it would use the money to fund an expansion that will allow it to improve its Web site and spend more money on advertising.
``We are a sandbox for the 'clickerati' generation,'' said founder and Chief Executive Officer Idit Harel. ``We are ready to build for growth.''
Harel, who obtained a PhD at Massachusetts Institute of Technology's Media Laboratory, founded MaMaMedia in late 1995 with a private investment of $5.3 million. The company has since grown to almost 100 employees.
In its latest sale of shares, the company raised more than the $20 million it planned to meet demand from investors. The investors included Robertson Stevens BancBoston Venture Services Group, Intel Corp., Seligman Financial Services, JH Whitney & Co., and RRE Investors Llc, said Harel.
Robertson Stephens managed the sale.
The company's name has nothing to do with baby-talk. Harel coined the name because she said it would prompt some people to laugh. It's been memorable enough to attract about 1 million visitors to the company's Web site in the month of October. MaMaMedia also has signed up 750,000 subscribers who receive free access to the site, said Harel.
MaMaMedia has signed an agreement with General Mills, Inc. to appear on the backs, sides and inside product pouches of more than 20 million Betty Crocker Fruit Snack boxes. In return, General Mills' advertisements will appear on MaMaMedia's Web site and in magazine. Exact terms of the agreement weren't disclosed.
--Sara Pepitone in the New York newsroom (212) 318-2300/tm