FORTUNE -- AOL Inc. (AOL) today announced that it will pay $405 million to acquire Adap.tv, a San Mateo, Calif.-based online video advertising platform. It's the largest acquisition of the Tim Armstrong era, and represents a sizable return for many of the venture capitalists who plugged just under $50 million into the business between 2007 and 2011.
Some notes and thoughts about the deal:
Why now? AOL pulled the trigger on the exact same night that Adapt.tv rival YuMe (YUME) priced its IPO, and less than 48 hours before Tremor Media (TRMR) reported Q2 earnings. And given that YuMe's IPO priced well below expectations and that Tremor's revenue growth has been sluggish, might Time Armstrong not have saved himself a few million dollars by waiting a few more days? Unless, perhaps, there was a stalking horse...
Israeli VC renaissance. Adapt.tv is not an Israeli company, but its first investment came from Herzliya-based Gemini Israel Funds, and is just the latest in a recent spate of big exits for Israeli VC firms -- the largest of which was Google (GOOG) buying Waze for $1.1 billion. Got to think this could be a catalyst for renewed VC fundraising in the country, after nearly a decade-long drought.
Heritage deal. The Gemini partner who led the firm's Adapt.tv investment, Danny Cohen, is now with a different firm (Carmel Ventures). And the Spark Capital partner who led that firm's initial investment in 2010, Dennis Miller, also has moved on (president of ops at TVGN).
Return on investment: The final VC money into Adapt came in early 2011, via a $20 million Series C round led by Bessemer Venture Partners. Pitchbook Data reports that the round had a post-money valuation of around $162 million, while the Series B round (done in two parts) finished up at around $58 million. So good returns all around, but not so amazing at the later stages [Note: a source also suggests to me that the Series C came in above $200 million -- something I reported in this morning's Term Sheet -- but I've since spoken to multiple folks who suggest Pitchbook's figure is much closer to the truth].
Sign up for our daily email newsletter on deals and deal-makers: GetTermSheet.com
With nearly 100 portfolio companies and just two remaining partners, what is the future of Michael Arrington's venture capital effort?
FORTUNE -- It has been 20 months since TechCrunch founder Michael Arrington launched CrunchFund, a venture capital firm that had the blessing of AOL, the company that had purchased TechCrunch one year earlier. Until AOL changed its mind, and Arrington was fired. Until it changed its mind again, and he rejoined MOREDan Primack - May 7, 2013 3:23 PM ET
Will Time Inc. shareholders be as pleased as those of Time Warner Cable and AOL?
FORTUNE -- Time Warner announced Wednesday that it plans to cut its Time Inc. magazine unit loose, spinning it off into an independent public company. There are all sorts of details yet to be worked out, but the largest question is whether this deal will actually work. And, by that, I mean create additional value.
Time Inc. MOREDan Primack - Mar 7, 2013 12:58 PM ET
Last Wednesday, Fortune reported that AOL and TechCrunch founder Michael Arrington had decided to part ways -- following a messy dispute revolving around a VC fund that Arrington had launched with AOL's consent and investment. Today, AOL (AOL) made it official.
In a brief statement, the company said:
"The TechCrunch acquisition has been a success for AOL and for our shareholders, and we are very excited about its future. Michael Arrington, the MOREDan Primack - Sep 12, 2011 12:13 PM ET
Not TechCrunch editor. Not AOL Ventures employee. Michael Arrington is on his own.
It has been a very long week for AOL. And it's about to get even longer.
Last Thursday, word leaked that one of its employees, TechCrunch founder Michael Arrington, was launching a venture capital fund that would include an $8 million commitment from AOL (AOL). Then came a more official version via the NY Times, which included positive quotes MOREDan Primack - Sep 7, 2011 9:10 PM ET
Tech blogger Michael Arrington might be in limbo, but someone else has lost more in the CrunchFund debacle.
It's now been five full days since CrunchFund was unveiled, and no one is coming out of this mess looking worse than Arianna Huffington.
Various reports suggest that she's furious with the implicit breaching of AOL's editorial ethics, and wants Michael Arrington not just banished from AOL editorial, but from AOL (AOL) as a MOREDan Primack - Sep 6, 2011 9:22 PM ET
If Michael Arrington is leaving TechCrunch, what does that mean for the investors in CrunchFund?
Yesterday we were first to report that tech blogger Michael Arrington has launched a $20 million venture capital fund, which is being backed by AOL (AOL) and a group of Silicon Valley's top VC firms.
I'm still working through my thoughts on all this, and AOL apparently is working through what this means for TechCrunch, the Arrington-founded MOREDan Primack - Sep 2, 2011 10:18 AM ET
AOL Inc. (AOL) today is firing hundreds of people, after closing its $315 million acquisition of HuffingtonPost. Many of these are journalists. For example, AOL exec Jonathan Dube tweeted:
I have just laid off dozens of the most talented journalists & product folks I know. Need talent? Let me know!
In a memo detailing the moves, AOL CEO Tim Armstrong tried to soften the blow:
With the acquisition of The Huffington Post and this MOREDan Primack - Mar 10, 2011 1:08 PM ET
The revelation that JPMorgan Chase is planning a dedicated fund to invest in social media companies on behalf of its wealthy clients is the loudest announcement yet that the third (fourth?) Internet bubble is in full swing.
Every day, it seems, another Web company files papers for an initial public offering, and every day the chatter about possible valuations reaches new levels of absurdity. Because it's going to get pretty noisy MOREDuff McDonald, Contributing Editor - Feb 15, 2011 11:05 AM ET
AOL has never been shy about acquisitions. But how they pull them off sure has changed.
AOL Inc. has the same initials and hunger for takeovers that the old America Online did—but it does them in a very different way. The new AOL uses a takeover currency that the old AOL almost never used: it's called cash.
The old AOL (AOL) did a ton of takeovers, too, but almost always used a MOREAllan Sloan, senior editor-at-large - Feb 8, 2011 11:29 AM ET
|November jobs report: Unemployment falls to 7%|
|Fast food worker: Protest didn't cost me pay|
|2 million Facebook, Gmail and Twitter passwords stolen in massive hack|
|Where should you put your money now?|
|Sick days: A luxury many hourly workers don't have|