Amazon founder invests in Business Insider

Jeff Bezos is personally leading a $5 million investment round in the business news site.

By Kim Peterson Apr 5, 2013 12:39PM
Henry Blodget (Paul Zimmerman/Getty Images)Remember when then-analyst Henry Blodget said in 1998 that Amazon (AMZN) shares would shoot to $400? And Wall Street laughed but began pouring money into the stock, making a boatload for founder Jeff Bezos?

Well, Bezos and Blodget (pictured) are back, though on a much smaller scale. The Amazon CEO is leading a round of $5 million in venture funding for Business Insider, Blodget's business news site. Bezos is investing personally, and not using Amazon cash, through his investment arm Bezos Expeditions, Bloomberg reported.

Other investors in the round include RRE Ventures and Institutional Venture Partners.

There appear to be no issues with Bezos investing in a site that gives considerable coverage to Amazon. Blodget told Bloomberg that the site would disclose the investment whenever it mentions Amazon.

Observers noted the long connection between Blodget and Bezos. "The only other thing to spell out here is that this deal reminds you that life is long, and relationships last," wrote Peter Kafka at AllThingsD.

Business Insider, which has 100 employees, is not profitable, according to reports. It had $10 million in sales last year and is expecting $15 million this year, Bloomberg reports. It lost $3 million last year.

More on moneyNOW

Tags: AMZNMedia


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?


[BRIEFING.COM] S&P futures vs fair value: -5.80. Nasdaq futures vs fair value: -12.80. U.S. equity futures trade modestly lower amid cautious action overseas. The S&P 500 futures hover six points below fair value after climbing off their overnight lows reached during the Asian session. The night has been very quiet on the economic front with several central bank and government officials playing down expectations of additional stimulus. On that note, China's Finance Minister Lou Jiwei ... More