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This page highlights acquisition of web sites and internet services by what has been dismissed as 'mainstream media' (MSM): print publishing and broadcast groups such as News Corporation, John Fairfax, Tribune and NBC.

It covers -

More detailed information about each of the major media groups is available on the Ketupa.net site.

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Acquisition by MSM groups of online businesses has occurred over the past ten years, with distinct peaks as the boom gathered pace (followed by closure or disposal of some online operations in 2000-2001) and from mid-2005.

Recent acquisition activity has been justified as addressing the emergence of niche audiences, although the supposed "demise of the mass audience" explored elsewhere on this site has not yet seen marketing towards a billion "markets of one". Those deals centre on sites that

  • feature classified advertising and search (in particular jobs, vehicles and real estate)
  • cater to niches but supposedly have the potential for broad appeal, in particular 'community networking' (aka social software sites) such as Myspace.com, which was acquired by News Corporation for US$580 million in 2005.
  • allow people to play casual interactive games
  • enable nonspecialists to store, send, edit and print photographs
  • allow users to build and search blogs.

Although major investments have attracted most attention much of the spending has been incremental and minor, with News for example taking a US$3.5 million stake in recruitment search engine Simply Hired in 2006.

Conventional wisdom is that the major groups are seeking to acquire or build sites that attract those niche audiences in substantial numbers, with a US site supposedly needing upwards of a million unique visitors per month site for mass-market advertisers.

To reach a narrowly defined audience, such as a major portal's finance page, the cost for having an advertisement seen 1,000 times is US$20 to US$50. For a broader audiences with specific interests, such as visitors to a job search site, the price is US$4 to US$10 per thousand impressions. For general audiences, such as regular users of Myspace.com, the price is US$1 or US$2 per thousand impressions.

Landmark acquisitions by 'old media' (along with a few points of reference) include -

section marker icon     1991

Tribune takes 10% stake in AOL for US$5m

section marker icon     1995

TMP Worldwide acquires Monster Board (Monster.com)

section marker icon     1997

BCE buys buys 10% of Sun Media and 40% of CANOE

section marker icon     1998

Disney buys 43% stake in Infoseek web portal

Vivendi sells 6.5% stake in Telewest for £200m

section marker icon     1999

Hearst-Argyle buys 30% of Internet Broadcasting and takes stake in Geocast Network Systems

Carlton takes 20% stake in PeopleBank online job agency and 25% stake in Ask Jeeves UK

NY Times invests US$15 million in TheStreet.com

Scripps consortium acquires AdOne online classified network

section marker icon     2000

AOL merges with Time Warner

Liberty and Vulcan Ventures take US$190m stake in priceline.com

Knight Ridder, Gannett and Tribune buy CareerBuilder

INL sells Terabyte Interactive

section marker icon     2001

Primedia and About, Inc announce US$374m merger

Trinity Mirror sells ic24 ISP

Vivendi buys MP3.com for US$372m

Tribune, CareerBuilder and Knight Ridder buy Headhunter.net

section marker icon     2002

Vivendi sells its 50% share of Vizzavi for €142m

section marker icon     2003

Vivendi sells MP3.com to CNET

section marker icon     2004

DMGT pays £13.8m for Find a Property, UK's largest independent property website

Seven sells AOL|7 stake to Primus

LexisNexis acquires Seisint for US$775m in 2004

Tribune, Gannett and Knight Ridder acquire CrossMedia Services and launch ShopLocal.com

section marker icon     2005

NY Times buys Buys BlogRunner, Indeed.com and FM Publishing

EMAP pays £140m for online fashion portal Worth Global Style

NY Times buys About.com from Primedia for US$410m

EW Scripps pays US$560m for Shopzilla

Dow Jones buys MarketWatch.com for US$519m

John Fairfax pays $38.92m for dating site RSVP.com.au

News Corp pays US$580m for Intermix Media

News pays US$25.3m for propertyfinder.com

Telegraaf Media Groep acquires 70% of Relatieplanet and Iwannadate

Viacom buys Neopets for US$160m

DMGT buys Zambeasy jobs site for £4.1m

Trinity Mirror buys recruitment service Hotgroup for US$87m

News Corp pays US$650m for IGN Entertainment Inc

News Corp pays US$580m for Myspace.com

Yahoo buys Del.icio.us

BSkyB pays £211m for UK broadband ISP Easynet

ITV buys Friends Reunited for £120m

DMGT buys Fastcrop (property site Primelocation.com) for £48m

section marker icon     2006

UBM buys lightreading.com and techonline.com

VNU buys UK's The Inquirer and France's Silicon.fr

Hearst buys NetDoctor, top UK consumer health site

NBC Universal pays US$600m for iVillage

Lycos US sells Quote.com to IDC for US$30m

VNU buys Tweakers.net, Holland's largest tech news site

John Fairfax buys Trade Me for $625m

Fairfax pays reported $5m for commercialrealestate.com.au

EW Scripps agrees to pay US$366m for UK price comparison service uSwitch

Independent News & Media buys 20% of UK online gaming company Cashcade

News pays US$3.5m for stake in Simply Hired

Reed Elsevier pays est US$40m for medical site Gold Standard

Viacom buys online gaming community site Xfire for US$102m

News acquires kSolo and Newroo

DMGT buys Allegran (inc dating portals GirlsDateForFree, DatesForParents.com and LoopyLove.com) for £46.5m

DMGT buys 62.5% of Data Media & Retail (Carsource.co.uk)

Trinity Mirror pays £4.4m for Email4Property

Viacom buys Xfire for US$102m

Tribune acquires ForSaleByOwner.com


Viacom buys Y2M: Youth Media & Marketing Networks (publisher of 450 online college newspapers)

 




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version of August 2006
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