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

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.