Om Malik a couple days ago had reported that Six Apart, the parent company of Typepad and Moveable Type, will acquire Danga’s Live Journal.
The deal is a mix of stock and cash, and could be announced sometime
later this month, according to those close to the two companies. If the
deal goes through, then Six Apart will become one of the largest weblog
companies in the world, with nearly 6.5 million users. It also gives
the company a very fighting chance against Google’s Blogger and Microsoft’s MSN Spaces.
The news was confirmed by Six Apart in a press release. Fred Wilson likes the way Live Journal gives Six Apart a free/low end service (which he thinks can draw advertising) to complement its now premium services. Martin Tobias also likes the merger.
Live Journal really doesn’t have any options other than getting funding and growing management themselves. With Six Apart already funded by August Capital (a GREAT VC), the shorter route to success is merger.
Danga’s Brad Fitzpatrick tells his customers he is positive about the deal.
Ben and Mena, the founders of Six Apart, have built a great company and hand-picked a lot of great people. Over the past couple months I’ve come to know their executive team really well, and they’re people I feel confident taking over control of my baby. They’ve already shown that they’ll defer to me on issues of community, fearful of doing anything that’d upset people. As for the rest of the team, I’ve only started meeting them all, but my mouth hit the floor when I saw some of the latest stuff they have in the works.