Jeff Bezos Invests in Business Insider

The Wrap
Amazon Founder Jeff Bezos Invests in Business Insider
.

View photo

Amazon Founder Jeff Bezos Invests in Business Insider

Henry Blodget is having one heck of a week.

First, the Business Insider CEO and editor-in-chief was the subject of an exhaustive, 5,260 word profile in this week's New Yorker, a sign he's won a seat at the media mogul table.

On Friday, he announced that the site has snagged a big-name investor in the form of Jeff Bezos.

Also read: Business Insider CEO Henry Blodget: I'm Not Reading My New Yorker Profile (Exclusive)

Bezos Expeditions, the personal investment company of the Amazon founder, has led a new $5 million round of financing for Business Insider, Blodget said. He added that the capital infusion will be used to bulk up the site's editorial and technology arms.

"On a personal note, I will add that we are totally stoked about this," Blodget wrote on his site. "Jeff Bezos's leadership, vision, and philosophy at Amazon over the last two decades have inspired a whole generation of startups and entrepreneurs, including me. Jeff has always put Amazon's customers first. This focus is rare in American business, and it is one reason why Amazon has been so successful.  I have admired Jeff and Amazon since the mid-1990s, and it is a privilege and pleasure to have Jeff invest in the company."

The only downside is that Blodget got scooped on his own announcement. Bloomberg broke the news Friday before official word was posted.

Blodget said the company will disclose that Bezos is an investor when Business Insider writes about Amazon. 

Business Insider commands an audience of roughly 24 million unique visitors a month, according to Google analytics. It had revenue of $11 million in 2012, but posted a loss of $3 million.  

The site's growth has spelled redemption for Blodget in some circles. His reputation was tarnished during his time as Merrill Lynch's head of global internet research in the 1990s and early aughts. He was accused of bolstering the stocks of certain digital companies that he privately expressed doubts about and was charged with civil securities fraud by the U.S. Securities and Exchange Commission.

View Comments