Yahoo gazes longingly at Demand Media
ADOTAS — Is the recently revived company ready to join the Facebook generation?
As social networks get more attention, and Google kicks the tires on Twitter, Yahoo has been working on delving into the social media market. And JMP Securities analyst Sameet Sinha said that if its social networking features catch on, advertisers will take note.
“People are spending time on Twitter and Facebook, but advertisers don’t want to be there right now. That’s the big issue,” Sinha told Reuters. “But Yahoo advertisers are already there.”
And apparently there is already some speculation that Yahoo could be looking at Demand Media. The company takes user-generated content of all kinds and on all kinds of topics–especially via video–from an army of freelancers and leverages it into massive traffic that it monetizes. It’s also the one of the bigger suppliers of video to YouTube, which it also monetizes. And, through the acquisition of Pluck, the company also laces social networking tools throughout the sites, as well as for many well-known third parties. Demand has upwards of 70 million of unique visitors per month, at sites like eHow and GolfLink.com, with about $150 million in annual revenue.
How much would the deal be worth? According to AllthingsD, it could cost anywhere from $1.5 billion to $3 billion.
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