• by Gavin O'Malley  @mp_gavin, March 7, 2008

Federated Media was in the news again this week amid continued rumors that the ad network is looking for additional financing, and even a potential suitor.

Citing a source familiar with the deal, CNET reported Wednesday that FM is looking for between $20 million and $30 million. But a key source close to the situation tells OnlineMediaDaily that no decision has been made by FM to raise more funds. "The knowledge they have is somewhat limited," this highly placed source said, referring to those parties discussing FM's plans with the press this week.

Even less likely is the prospect that FM will be acquired anytime soon, the source added.

Speculation over FM's future has been rife since January, when industry blog paidContent reported that FM had hired investment bank GCA Savvian Advisors. Rival blog TechCrunch then reported that FM had turned down a $100 million buyout offer from one interested party.

Ad networks are presently raising significant sums of venture capital.

Women's fashion and shopping e-publisher Glam Media, for one, just raised another $84.6 million in financing, which valued Glam at approximately $500 million. The infusion--which added to the $30 million Glam already received--was led by German publishing behemoth Hubert Burda Media.

FM has already raised about $7 million from a number of premiere investors, including JPMorgan Partners and The New York Times Co.

John Battelle, founder and CEO of FM, would only confirm the hiring of Savvian.

Battelle, known for founding The Industry Standard and serving as co-founding editor for Wired magazine, has said since FM's 2005 launch that the network is strictly for "high-quality, high-authority" blogs, including general interest blog Boing Boing, and Jeff Jarvis' influential BuzzMachine blog.

FM is currently profitable, and late last year began offering 60/40 splits to its publishing partners worth about $1 million.