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.
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