Electronic Newsstand Gets $20 Million Capital Infusion
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The Electronic Newsstand Inc. in Washington, DC said it has received a $20 million investment from Chicago's Madison Dearborn Partners Inc.
Brian Hecht, president and CEO of The Electronic Newsstand, said the investment "will keep growth on a fast track for a company that has been the early leader in online magazine sales."
The company said it expects magazine subscription sales are likely to follow books and music as a dominant e-commerce category.
"The Electronic Newsstand has a clear first-mover advantage in the growing online magazine category," said James Perry, managing director of Madison Dearborn. "Through aggressive partnering and innovative Internet marketing, The Electronic Newsstand has built the foundation of a true e-commerce success story."
The company said that its "Newsstand Network" of affiliate sites mushroomed to more than 1,500 partners, each of which earns sales commissions by constructing a custom newsstand catering to the interests of its users.
Madison Dearborn is a private equity investment firm specializing in the telecommunications and Internet services markets.