Former Fox Interactive Media president Ross Levinsohn and former AOL chief executive Jonathan Miller last month became the latest media heavyweights-turned-Web 2.0 investors.
Through their new Velocity Investment Group, backed by private-equity firm General Atlantic, the two reportedly plan to fund Internet startups and pursue acquisitions.
They follow other media bigshots such as ex-Disney CEO Michael Eisner and former Yahoo COO Dan Rosensweig who have exited the executive suite to cash in on the frenzied dealmaking for digital media
properties. Eisner's Tornante Company has taken stakes so far in Web video company Veoh Networks, among others, while Rosensweig left Yahoo last spring to start the Silicon Valley office of buyout
firm Quadrangle.
The creation of new Internet media-focused funds is likely to push already high valuations for hot Web properties to new heights.
Reports about the Levinsohn-Miller venture mention plans for Internet roll-ups, spin-offs and IPOs, inspiring dot-com déjà vu. Expectations will also be high, with Levinsohn likely judged by
whether he can find the next MySpace. But bargains won't be as easy to come by now that everyone in media and finance has Web 2.0 fever.