Update #2: Jason Goldberg, founder of Social Median, in an emailed response to MediaNama has said that “Truesparrow has been a tremendous partner for socialmedian. They have had a considerable equity stake in socialmedian and will be a Xing shareholder as part of this transaction. As a shareholder they are a party to all aspects of the deal.” Which means True Sparrow gets both cash and equity.
Update #1: Nishith Shah of True Sparrow Systems has confirmed to MediaNama that they did have stake in Social Median; he declined to comment on how much stake, though. Shah said that they don’t have any concrete plans yet, but they will continue to work on Social Median, and will explore doing other things as well. Almost the entire TrueSparrow team was working on Social Median
Original Story: European professional networking site Xing has acquired SocialMedian, a social news aggregator founded by Jason Goldberg. Goldberg will be joining Xing in Germany, as VP for Xing Applications Platform. SocialMedian services will be launched within Xing as well.
Techcrunch reports that Xing is paying $7.5 Million for acquisition – $4 million in cash and EUR 0.5-2.5 million payable over three years.
SocialMedian was developed entirely in India, by Pune based True Sparrow Systems, which also had a stake in the venture. According to what Goldberg wrote in August “…we have made our Indian team shareholders in socialmedian, so we are one company building one product. It’s an offshore situation, not an outsourcing relationship.”
The entire social median team (Goldberg was apparently the only US employee) will be joining Xing. Social Median is Goldbergs second startup: he had earlier founded Jobster in 2004, only to step down as its CEO last year.
It’s a fairly early exit for Goldberg. The site was launched a few months ago: I signed up for SocialMedian on July 21st, while it was still in closed alpha, and frankly, never got around to using it extensively because it was too cumbersome to navigate. Hopefully, it will be made more user friendly now.
P.s.: Thanks for the headsup Shyam: XING’s SocialMedian acquistion: Thoughts, conclusions