Former AOL CEO Tim Armstrong launched a new company that wants to help Instagram brands grow and put on Coachella-like 'experiences'
- Former AOL CEO Tim Armstrong announced he'll be launching a new company focused on the direct-to-consumer retail market.
- According to a CNBC report, Armstrong's latest venture named "the dtx company" will work with retail businesses created online and help them connect directly with consumers.
- To date, dtx has already invested in a half dozen companies, including health beverage company Dirty Lemon, bra-maker Third Love, and manicure company OIive & June.
- Armstrong also wants to launch a trade show of sorts which he envisions to be a mix between the Consumer Electronics Show in Las Vegas and the Coachella music festival.
Brands that first became popular online - like Allbirds shoes and Glossier beauty products - have caught the attention of former AOL CEO Tim Armstrong.
On Thursday, Armstrong announced he's launching a new company to work with these so-called "Instagram brands" and to go all-in in the so-called direct-to-consumer retail market.
According to a CNBC report, Armstrong's latest venture named "the dtx company" - which stands for "direct to consumer" - will help "empower consumers and companies to build direct relationships."
Armstrong, who spent years at Google as an ad sales exec, says the dtx company will invest in other startups in the direct-to-consumer space and work with brands to foster their growth. To date, dtx has already invested in a half dozen companies, including health beverage company Dirty Lemon, bra-maker Third Love, and manicure company OIive & June.
Armstrong told CNBC that also he wants to launch a trade show of sorts which he envisions to be a mix between the Consumer Electronics Show in Las Vegas and the Coachella music festival. This "festival of the future" would showcase direct-to-consumer brands (which are typically found only online) and bring them to life for consumers to experience in-person, he explained in the report.
The dtx company will be a shift for Armstrong, who has spent his 25-year career in the digital media and advertising worlds.
Armstrong helped build Google's ad business from a $700,000 a year operation to a money making machine that mints billions of dollars each quarter.
Armstrong became the AOL CEO in March 2009 and remained in the role through Verizon's acquisition of the company in 2015. When the telecoms giant also acquired Yahoo in 2017, he became the CEO of Oath - Verizon's media and advertising business. Armstrong left Oath in September 2018.