Learn how we work with startups and entrepreneurs to deliver marketing strategies and tactical execution

inbox

The Rise and Fall of Geosign

March 5, 2008 BY Mark Evans

My friend, Robert Thompson, has a story in the Financial Post magazine that provides a fascinating glimpse behind the scenes at Guelph, Ont.-based Geosign, which built a $100-million business by arbitraging Google AdSense keywords and Yahoo Ads.

Geosign’s success allowed it to raise $160-million of venture capital from American Capital, and turned it overnight from a company with almost no profile into Canada’s tech darling.

The bottom abruptly fell out, however, when Google changed AdSense’s terms of service. Geosign had to fire dozens of employees – many of whom had just been hired – and the company was split into two with American Capital taking control of Geosign’s marketing and advertising assets, which it spun off in a new entity called Moxy Media.

Technorati Tags: , ,

0
Subscribe to "This Week in Canadian Startups"
A weekly newsletter delivered to your inbox!

This entry was posted in Google. Bookmark the permalink.
  • Anonymous

    and eMedia.com as well

    I must say amount of changes is unbelievable, before, now, and after

    “change is the only constant”

  • http://www.wheretonext.ca Magnus

    Mark,

    I remember your story about Geosign when they got the VC influx. I had a friend in the ad business looking for work so I suggested he check them out. I actualled Facebook searched them and found a group called “Geosigned off” of ex-employees helping each other find jobs. I knew then their GIG was up.

  • Pingback: Demand Media sucks and everybody knows it « Consolidated Rock