Watch out digital media entrepreneurs – more money coming

By pandu

Velocity Investment Group was formed recently by former AOL CEO Jonathan Miller and former Fox Interactive President Ross Levinsohn. The group will invest in small Internet companies, bring them under an umbrella group and after strengthening their ad revenues, resell them as part of a larger company. The group will initially focus on digital media companies. This is likely in direct response to the spate of buyouts in digital media – WPP bought 24/7 Real Media, Google bought Doubleclick, Microsoft bought aQuantive and Yahoo bought Right Media. The big loser was Valueclick, which was the only free-standing digital ad company that did not get bought out and is now too small to compete. Velocity might end up buying Valueclick.