Yahoo Acquires Associated Content

May 19th, 2010 at 10:47 am

It seems that Yahoo may be transforming itself into a different company. It may just be slowly making itself less as an online search giant and more of an online content provider. Proof of this may be the recent acquisition of media company Associated Content by Yahoo.

Yahoo recently acquired Associated Content in a deal that cost the online search portal around US$100 million. It is a move that many say would transform Yahoo from merely a search portal into more of an online content provider. Yahoo has long been in the struggle with Google to get into the top of the online search market. But it seems that Google have better chances and enjoyed spectacular success in this sector.

Yahoo also may have acquired a change of business mindset when it went through several struggles to stay afloat after undergoing a botched acquisition by Microsoft and a change of leadership along the way. Yahoo then started venturing in getting into their other strengths aside from just being an online search portal. The company is slowly developing into a portal that focuses on providing online content for its visitors.

The acquisition of Associated Content can provide Yahoo with new technology, strategy and means to produce various online media content. Associated Content is one of those companies that deal with providing low-cost and crowd-sourced online content, something that Yahoo would need to make itself into a major online content provider. A similar strategy for acquiring low-cost media is also being used by other online media companies that Yahoo may be trying to groom itself into becoming.

It may be the right move for Yahoo if it is really serious about its change of business direction. But the change also has its own set of challenges that the company still has to face. There are also the competition to consider and more online users to attract. To say that Yahoo would succeed in this venture would still be a bit premature. Only time and a continuously sound business strategy would make it possible for Yahoo in the next coming months, or years even.

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