Apparently Web Content Is Hot Again

from the content?--really? dept

Every few years, someone announces that “content is king” online and that the next big success stories are going to be all about the content. Of course, that never actually seems to happen — perhaps because the content business is a tough one, prone to fads and mostly beholden to a cyclical advertising market. A few years back, some people expected a wave of “blog buyouts” after AOL paid $25 million for Engadget and a bunch of less popular Weblogs Inc. sites. However, not much came of it. Lately, however, Hollywood is turning its eye towards online content, and with it, we’re seeing a small wave of online content buyouts. This week first had the announcement that yet another batch of Hollywood insiders were launching an online video property, following the lead of folks like Will Ferrell, who launched similar properties in the last few months. However, what may be more interesting are the content buyouts. First, Discovery Communications, parent of The Discovery Channel, bought the popular TreeHugger blog for $10 million and now HandHeld Entertainment picked up the well-known (and often infamous) eBaum’s world for somewhere around $15 million (possibly more with earnouts). None of these deals are really that big, but it makes you wonder if there’s going to be a run on various popular independent content sites, and whether or not content really will be king this time around.

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Comments on “Apparently Web Content Is Hot Again”

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ScaredOfTheMan says:

Content vs Services

It seems in the world of internet acquisitions the content sites are always at the bottom of the food chain. The Service sites (photo sharing, video sharing, social networking) always seem to be worth 10 to 100X more. Its strange only because in the bricks and morter world the Content creators are usually the winners, a la dow jones for ($5b)

Think of Ze Frank, he had an awesome show with lots and lots of followers. No one bought him out for millions. Or the guys a Jibjab make great videos…no buyers.

But a site that lets keep your friends notified of your lack of interesting things to do, with no business plan (twitter) that is worth millions

Jack says:

Wow – Ten Million for Treehugger; just boggles the mind. What made the buyer offer so much? Are they simply Wal-mart lovers and want to read every single, oh-so-minor but exciting detail of Wal-mart’s PR efforts to distract from the fact they pay their employees really poorly and offer lousy health benefits? I mean, com’on, Wal-mart is the topic/company the Treehugger writers have posted about the most.

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