Yahoo Snaps Up Associated Content for $90 Million to Counter AOL and Demand Media

mikehudack:

soupsoup:

Yahoo, in a clear attempt to get deep into the social content space and better compete with both AOL and Demand Media, announced the acquisition of Associated Content.

Sources close to the situation said the price was $90 million in cash, which is a solid outcome for Associated Content, which was competing in a very crowded space.

Are you kidding? $90 million cash is a FANTASTIC deal for Associated Content. We’re skeptical of the whole future of content farms—they get rock bottom ad rates, and the model they’re working on, people finding content primarily through search, is in increasingly outdated one. Unless Yahoo can find a way to splice AC into social networks, this seems like a lot of money to pay.