Quick, Get the Camera, Honey. Yahoo Bought a Company That’s Already Making Money.
by John Paczkowski
Posted on June 21, 2007 at 10:35 AM PT
Facilities has had just a few days to pry the “Terry Semel” nameplate from the door of Yahoo’s CEO offices, and already it’s back to business as usual. This morning the company acquired Rivals.com, a college football- and basketball-focused news and community site. Financial terms of the deal weren’t disclosed, but presumably the purchase price is close to the the $100 million reported by paidContent back in April.
It’s a savvy acquisition for Yahoo, one that delivers a pre-existing and very local audience to Yahoo Sports, which is battling it out with ESPN.com and other rivals for the desirable college-sports-fan demographic. And of course, it helps that Rivals.com is actually making money–about $22 million or so a year. That said, it’s not really the sort of major acquisition (read: Facebook) that might make up for the two big bungled acquisition chances–YouTube and DoubleClick–that allowed Google to take such a commanding business lead.
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