Yahoo said on Tuesday May 18 , 2010,
“it has agreed to acquire the user-generated publishing company Associated Content to add more pages to attract advertisers.”
Fiscal terms of the contract were still undisclosed.
Associated Content pays its 380,000 donors an ostensible fee to create niche-related articles on thousands of subject matters like health, technology and travel.
With this pact, Yahoo is planning to take advantage on a profound trove of content shaped for very small money as customary media companies move violently with the expenditures related with making news and features.
Newspapers, magazines and broadcasters have been economizing their newsrooms on a harsh fall in publicity incomes.
Matthew Idema, vice president of home at Yahoo said,
“We feel that a contributor-driven model is absolutely part of the future of media.”
The design is for Yahoo to make wider its content contributions as an approach to draw more advertisers.
By now the Internet Company is generating its own material and has joined with hundreds of newspapers and other traditional media companies to showcase their material.
Idema clarified that,
“Associated Content’s articles — mostly bite-sized pieces on subjects like how to turn back the clock on aging — will blend with other articles featured on Yahoo.”
But with the related Content buy, Yahoo does not have to hole marketing profits similar to it does with its added partners, nor does it have to disburse great sums to manufacture it.
Ken Doctor, a news industry forecaster with sells more than Research and writer of the book Newsonomics.
“It makes them a publisher, essentially. Now they have a lot more content they can serve advertising against.”
Yahoo is in first-rated companies. AOL is demanding to take advertising share by creating content — some of it supplied by users with its Seed.com service.
AOL Chief Executive Tim Armstrong was an early on shareholder in Associated Content while at rest and senior manager at Google Inc. His investment in Associated Content and AOL’s current tactical budges to user-generated content had guided to broad anticipation that AOL would be the most-likely purchaser of Associated Content.
Associated Content also vies with Demand Media — which is stated to be walk around an early public offering — and The New York Times Co-owned About.com.
[Via Reuters]
