CBS Acquires DotSpotter

October 11th, 2007 at 12:00 am
 


Anthony Soohoo, a former Yahoo executive founded in January 2007 a celebrity gossip news and social bookmarking site called Dotpotter .  Along with the success of Perez Hilton and TMZ.com, Dotspotter has enjoyed a steady growth in traffic  as well as a reliable user base.

Today, after 10 months Dotpotter was bought out by CBS for a whopping $10-Million price tag.  CBS has earlier acquired other promising sites like Last.Fm (social music) and Wallstrip (stock market video blog) which are easier to imagine why than their latest acquisition.  What CBS will do with Dotspotter is quite unclear especially since they already own similar sites like TheShowBuzz , Insider and ET

The $10-million price tag is quite huge but according to paidcontent there may be a god reason: "the price is not for the site itself, but the team that has built it…that may also mean there’s a heavy earn-out component, possibly."

All in all, the acquisition of Dotspotter, whether we understand it or no, is part of CBS grand plan of marketing their shows and whatever else they have across various social networks.  Of course it is way much easier if you owned the social network so I guess CBS has a point.