Yahoo acquires Associated Content; shot across bow of AOL, Demand Media

Summary:Yahoo on Tuesday announced that it would acquire Associated Content, firing a shot across the bow of AOL and Demand Media in the race for content.

Yahoo on Tuesday announced that it would acquire Associated Content, firing a shot across the bow of AOL and Demand Media in the race for content.

For Yahoo, the move makes plenty of sense. Under fire from AOL's Seed.com and Demand Media, Yahoo needed a big content factory to keep eyeballs on its site and off of others'.

In Associated Content, it finds about 380,000 contributors on tap, which Yahoo says fit nicely with its established editorial team.

"Combining our world-class editorial team with Associated Content's makes this a game-changer," CEO Carol Bartz said in a statement. "Together, we'll create more content around what we know our users care about, and open up new and creative avenues for advertisers to engage with consumers across our network."

When it comes to content creation, it's all about advertising, and the acquisition gives Yahoo more places to put them.

Yahoo said it plans to use Associated Content to create content around topics, as well as use Associated Content in its existing media properties.

Yahoo also said it would scale Associated Content U.S.-centric focus to a global audience.

Yahoo expects to complete the acquisition in the third quarter of 2010. Financial terms were not disclosed, but BoomTown's Kara Swisher pegged the price at $90 million.

Topics: Social Enterprise

About

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. He is also the former editor of SmartPlanet, ZDNet's sister site about innovation. He writes about business, technology and design now but used to cover finance, fashion and culture. He was an intern at Money, Men's Vogue, Popular Mechanics and the New York Daily Ne... Full Bio

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