The Future of Print

Hyperlocal sites becoming major M&A targets (Dealscape – M&A)

Posted in Boom by futureofprint on January 6, 2010

While newspapers have been decimated by the economics transforming today’s media industry, Web sites that report news and deliver other content at the neighborhood, or “hyperlocal,” level, are bursting with life, with many of them becoming sought-after targets by big media and big tech companies. In December, Google Inc. (NASDAQ:GOOG) tried — and failed — in its reported $550 million bid to buy Yelp Inc., a user-generated review site that has raised $31 million from investors including Bessemer Venture Partners, Benchmark Capital and DAG Ventures since its inception in 2004.

Successful acquisitions in the sector in 2009 included MSNBC.com’s buying EveryBlock.com for undisclosed terms and AOL Inc.’s (NYSE:AOL) purchases of Patch Media Corp. and Going Inc.

Meanwhile, hyperlocal startups continued to get funded. In December, Outside.in Inc., which pulls together neighborhood blogs and other local content, announced it had closed a $7 million Series B round of funding, led by existing investor Union Square Ventures, with participation from new investor Turner Broadcasting System Inc. As part of Turner’s investment, CNN.com will use Outside.in’s aggregation and curation tools to power hyperlocal news across all of its sites. The new round brings Outside.in’s total raised to $12 million.

via Hyperlocal sites becoming major M&A targets (Dealscape – M&A).

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