* Brightcove eyes IPO in first half of 2011 - source
* Company making plans for acquisitions - CEO
* Recruits CFO Chris Menard from Phase Forward
By Yinka Adegoke
NEW YORK, Oct 18 Online video publisher
Brightcove is preparing for an initial public offering in the
first half of next year, according to a person close to the
Brightcove, which helps media and marketing companies
distribute Web videos across the Internet, is betting on a
dramatic increase in the use of video as a communication tool
by a wide range of companies, including those in retail and
The company has recruited Chris Menard as chief financial
officer from Phase Forward, a mid-sized software company.
Chief Executive Jeremy Allaire said the company was
attracted by Menard's experience at Phase Forward and his
previous work with acquisitions, another strategic priority of
Brightcove. Phase Forward was bought by Oracle ORCL.O in
August for $685 million.
"Chris is a very talented rising star with great experience
as public company CFO at a business with a similar model in
software-as-a-service," Allaire said in an interview.
Menard is the latest in a string of senior executives who
have joined Brightcove this year, including President David
Mendels, who came over from Adobe Systems (ADBE.O) in January.
In addition, former Macromedia CFO Betsey Nelson has joined
the Brightcove board. Both Allaire and Mendels worked with
Nelson at Macromedia.
"These appointments underscore that we're building a
significant global independent company," said Allaire.
He declined to comment on whether the company was lining up
an IPO, but the source close to the company said plans are in
the works to go public in the 2011 first half.
The company says its revenue has grown by 50 percent
year-on-year and is expected to hit about $50 million this
Brightcove's rivals include Comcast Corp's (CMCSA.O)
theplatform unit, but Allaire said the company is gearing up
for competition from much larger companies, including Google
Inc (GOOG.O), Microsoft Corp (MSFT.O) and Akamai (AKAM.O).
"My expectation is that over the next year any number of
large publicly traded Internet companies will try to get into
this market either organically or through acquisition," he
Allaire is keen for his company, which has raised about
$100 million in venture funding to date, to take advantage of
consolidation in the market.
"We're seeing very real opportunity for M&A, we're very
well capitalized as a company and are valued highly," he said.
Brightcove is looking for acquisitions that will help it
improve its market share, differentiate its technology and
recruit new talent, he added.
Earlier this year there was speculation that Brightcove
might be a Google acquisition target. Allaire declined to
comment on that.
(Reporting by Yinka Adegoke; editing by John Wallace)