I am pleased to report that earlier today we announced American Express will acquire Revolution Money.
I have been working as Chairman of Revolution Money since early 2007. Revolution Money was launched by my good friend Steve Case and his Revolution LLC concern and Steve and I are the most significant investors in this enterprise.
We are proud to have built something of great value for our employees and investors but more importantly for consumers and merchants. I am also proud to have mentored a very talented founder, Jason Hogg, as he launched and then scaled this platform and enterprise.
I will continue on with Revolution Money once the deal formally closes as a special assistant to the Chairman of American Express, Kenneth Chenault. I hope to help Ken and his team develop a vibrant and fast growth new set of digital enterprises and applications for American Express.
Here is the official news release for your information.
American Express to Acquire Revolution Money to Develop
Next Generation Payment Products
Deal combines state-of-the-art technology platform with leading global brand
ST PETERSBURG, FL, November 18, 2009 – American Express Company today announced it has agreed to acquire Revolution Money, a Revolution LLC company.
Revolution Money, launched by AOL Co-founder Steve Case’s Revolution LLC in 2007, provides secure payments through an internet based platform. No names or account numbers appear on Revolution cards and transactions are authorized by using a PIN number. The company’s online person-to-person payment accounts are FDIC insured and ideally suited for social and instant messaging networks. It also offers a prepaid card linked to those accounts that can be used for offline payments or to withdraw cash from ATMs throughout the United States.
“New payments products and platforms are evolving rapidly and it’s important for us to keep identifying cutting edge technologies that can extend our leadership beyond the traditional payments arena,” said Kenneth I. Chenault, chairman and chief executive officer of American Express. “While Revolution Money is a young and relatively small company, we believe it has big potential. This is a smart, nimble business. It’s run by an accomplished management team who have quickly developed some cutting edge e-payment offerings. Joining with American Express will help unlock their potential, while allowing us to deliver competitive online payment products more rapidly and efficiently.”
“Revolution Money has a lot of room to grow as it competes head-to-head with other online and person-to-person payment providers. We are committed to using our global brand recognition, marketing reach and network expertise to help reach a critical mass of customers,” said Mr. Chenault.
Jason Hogg, founder and chief executive officer of Revolution Money, will continue as president and chief executive officer. Ted Leonsis, a Revolution Money angel investor, major shareholder and chairman, will become a special advisor to American Express working with Mr. Chenault on overall digital and online payments strategy.
“We have built a next-generation payments platform that will enable American Express to compete even more effectively, especially against online competitors,” said Mr. Leonsis. ”Revolution Money’s technology brings together the online and offline worlds in a way that can transform the way consumers securely transact. And with the low cost structure enabled by internet technology, American Express is now even better positioned to scale their online presence over time.”
“Since our inception our sole goal has been to build a payments platform that can help transform the industry,” said Mr. Hogg. “Becoming part of American Express will enable us to reach that goal by scaling our technology and business and providing even greater consumer benefits. I, and the Revolution Money employees who helped build our company, are honored to be joining the American Express family and we are excited about what the future holds.”
The transaction, which is subject to regulatory review, is expected to close in the first quarter of 2010. The purchase price is expected to be approximately $300 million. Upon closing, Revolution Money would operate as a subsidiary of American Express and be the first component of its recently formed Enterprise Growth organization. Enterprise Growth was formed to leverage American Express’ existing assets and capabilities to generate incremental fee revenue and to drive the company’s entry into new payment areas and related businesses.
”We want to preserve the talent and culture that has made Revolution Money successful and we will be working with them to make the most of our respective strengths,” said Mr. Chenault. He said that the initial areas of focus will include:
- Developing re-loadable, prepaid products for new segments of the market
- Introducing new products for cardmembers who currently use other alternative payment systems
- Creating payment alternatives designed for social media sites and allowing open APIs that can help developers distribute new product innovations
- Developing mobile payments solutions in the United States
Other opportunities will include expanding Revolution Money payment solutions internationally, extending product offerings to banks that issue cards on the American Express network and creating new forms of PIN-based debit products.
Media Conference Call – Live Audio Webcast
A conference call with members of the media will be held today to discuss this announcement at 10:30 AM EST. The call will be hosted by Kenneth I. Chenault, chairman and chief executive officer of American Express, Jason Hogg, founder and chief executive officer of Revolution Money and Ted Leonsis, Revolution Money’s chairman.
A live audio webcast of the media conference call will be accessible to the general public and investors at http://ir.americanexpress.com. A replay of the call will be available at the same Web site address shortly after the call.
About Revolution Money
Revolution Money, a secure, state-of-the-art technology platform, was created to deliver significant value to both consumers and merchants through two products, RevolutionCard and RevolutionMoneyExchange™. The RevolutionCard provides consumers with enhanced PIN-based security, identity protection and numerous merchant discounts and incentives. MoneyExchange is an online payment service that offers consumers an easy, secure and free way to instantly send and receive money online to and from their friends, family and associates. St. Petersburg, Florida-based Revolution Money is part of the family of companies within Revolution LLC, which was founded by AOL co-founder Steve Case to drive transformative change by shifting power to consumers. www.revolutionmoney.com.
About American Express
American Express Company is a leading global payments and travel company founded in 1850. For more information, visit www.americanexpress.com.
Congrats Ted!!
great site and your writing style is amazing. just found your site on yahoo. I¡¯ll come back later for sure
Thank you so much for moving us out of our comfort zone.
Wow; fantastic. Ted; Congratulations, congratulations, congratulations. I know how hard you have worked on this project; or at least have a good idea having read your blog posts over the; years i guess now.
And congratulations to Jason Hogg; rare achievement working working with others in teams effortless jointly toward shared goals launch company; bring to profitability, create true value in the market place; entrepreneurship creating real jobs and opportunities for individuals in the community to be employed and work to enrich and increase themselves, their families, and the community as a whole.
Congratulations Steve case and all team members and deal-makers on both sides. This is; i believe; the ideal kind of way to enliven our economies.
We are truly fortunate to have men and women like you in Washington D.C. and the United States.
Really and truly; you’re THE reason I am here ;-j
Truly; the reason I am in D.C. NYC the United States rather than Costa Rica, Mexico, Brazil, Paris, London, Iceland, The Check Republic, Vancouver British Columbia, wherever else anywhere but here.
And fortunate; fortunate me; us we; i think the opportunity costs right now incomprehensibly way-off-the-charts too high to be anywhere else other than right here right now.
I am grateful for you efforts; presence, and involvement in the community.
The fact that you respond the quickest and without exception to my e-mails out of any person ever in my world; sometimes within’ seconds; click send, pick up my coffe, take a sip, look back over; Wow. No way. You’re kidding. Man; he was ready for that one. Oh my goodness.
(While many of my peers and colleagues are incapable of responding to my e-mails or returning a phone call; at all; ever. It’s not a skill they possess. I will never get a response to an e-mail or a return phone call from … a lot of them. And, you respond within seconds ;-j
I mean; I might have just cried a little bit; ok I
did; it enables me to anything on the face of the earth. Has a great deal to do with the man I am today. Thank you Ted.
You have made my day as well; today is truly THE day for me. Turning everything on; all else goes away for a little while; this will be my life for the next several years. Have established my company NARRASHARE Inc. Will take to profitability; generate real value in the marketplace and community; establish as and industry leader, and conduct an IPO for NARRASHARE.
My recent team-building; well; all decades my senior; my mentors; established industry leaders; some of my favorite people in the world; the team I really wanted to build.
THE team.
Including yourself Mr. Leonsis; Ted. Would you consider taking on a new protege; me?
Team-building came before all else; very real stated deadlines; real-world results now; collaboration fundamental at every level; can not allow myself to send you a plan or Snagfilms a feature documentary I have made myself. Must be collaborative efforts. Must be much better that anything I may achieve on my own.
NARRASHARE Share the Narrative.
Congrats Ted! Great news. Best of luck with AMEX!
Congrats on the sale, Ted!
Pingback: American Express Acquires Revolution Money | John Paczkowski | Digital Daily | AllThingsD
Congratulations! Just saw the news flash on WashPo. The merger should be great for you and Revolution Card, and for the end users, including myself.
Congratulations to everyone at Revolution Money, I was the chief architect there until earlier this year, good to see everything work out.
-John Davies-
Congrats Ted!
Thank you, Ted!!!!