Hydra CPA Network Restructures Amidst Internal Feuding and Lawsuits
By Anna Johnson on January 25th, 2010Hydra Group LLC has purchased the assets of Hydra LLC, including the Hydra Network, one of the Internet’s largest cost-per-action ad networks.
In the wake of infighting and lawsuits among the four original founders of Hydra LLC, it appears that original founder and CEO Zac Brandenberg formed Hydra Group with several partners to buy out the other three original founders of Hydra LLC, Doug Walker and his two sons Adam and Jason.
Investors in Hydra Group include Rick Podgorski, president of Chicago-based venture firm Windomar Partners.
According to Podgorski, Hydra Group plans to invest “significant financial resources” into the Hydra CPA network so it can “bring a higher level of traffic quality, technology and process control to the affiliate marketing space, and complete the build out of internal capabilities for direct distribution of ads across search, email, web display and social media.”
Hydra Group also plans to further develop the company’s recently launched education portal MyDegreeFinder.com, as well as add new lead generation websites such as Hydra Group’s soon-to-be-released tax portal OnlineTaxProducts.com.
Hydra Group is no doubt also seeking to rebuild its flagging revenues. According to the Los Angeles Business Journal, Hydra LLC’s revenues have plummeted from around $108 million in 2008 to half that amount in 2009.
Meanwhile, Doug Walker, Jason Walker, Adam Walker and Abby Whitridge are continuing to grow competing CPA network, W4 which they established in May 2009. Despite a successful lawsuit brought by Brandenburg against the Walkers for breaching their non-compete agreements, an appeals court granted a temporary stay, allowing the Walkers to continue owning and running W4.
Source: Joel Russell, “Internet Execs Failed to Click,” Los Angeles Business Journal Online, August 24, 2009
