Yahoo Grabs Associated to Increase Content

Yahooannounced today that it is buying Associated Content, a user-generated media company with 380,000 contributors and 16 million monthly visitors.

Yahoo, the second largest search engine after Google, said it will complete this acquisition in the third quarter of 2010. Although financial terms were not released by either company, the deal is thought to be worth in the area of $90100 million.

“Together, we’ll create more content around what we know our users care about, and open up new and creative avenues for advertisers to engage with consumers across our network,” Yahoo CEO Carol Bartz said in the official news release.

“Having insight into user intent through its leading search products enables Yahoo! to identify topics important to advertisers and users. Yahoo! plans to use Associated Content to create content around those topics and leverage Associated Content to contribute content to existing media properties.”

Business Insider pointed out that Associated Content, backed in part by AOL CEO Tim Armstrong, had considered AOL to be the most likely buyer, but they decided to launch the SEED “open content submission platform” instead.

Competitors include AOL and Demand Media. Demand has been criticized for producing a large amount of arguably low-quality content and is thought to be preparing for an IPO.

Associated Content also brings along the deals it has with publishers like Reuters, Turner, Scripps and Fox.

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