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Tuesday, January 18, 2005

Yahoo May Acquire Six Apart

David Jackson, raises a query
Yahoo to acquire Six Apart?
and concludes, this is possible.Excerpts with edits from an impressive analysis . My comments added in the bottom:

Six Apart, the owner of hosted blogging service TypePad and publisher of blogging software Movable Type, just acquired LiveJournal. Within six months Six Apart itself will be acquired by Yahoo!. Prices for Pay -Per-Click(PPC) ads are rising. Google and Yahoo! like that, but they realize they could make a lot more money if the opportunity for PPC ads wasn't limited to search. What is the fastest area of growth in Web content? Blogs. Blogging services, whether hosted or downloaded, are not just about blogs as we know them now - personal online journals. They're about something broader: cutting the cost of, and simplifying the process of publishing content to the Web.Because the blogging platforms are the largest generators of new Web content, they are a natural target for the providers of PPC ads. Many bloggers dislike the notion of advertising on blogs, but they're in for a shock. Blogger, TypePad, LiveJournal and the other blogging platforms will make it much easier for Web publishers to profit from ads. They'll build contextual ads into Web site templates, and use the publishers' sign-up information to open simultaneous advertising accounts. TypePad has already integrated the Amazon.com associates program into its TypeLists, and announced in November that it was partnering with contextual ad provider Kanoodle. It's only a matter of time before Google does the same with Blogger. This is why it's so remarkable that Yahoo! has no blogging platform. Yahoo! owns Overture, the main competitor to Google's keyword ad business. Ad inventory is in short supply, Web content is the greatest source of untapped inventory, and blogs are the fastest growing area of Web content. Google owns Blogger, Microsoft quietly announced recently that its blogging platform, MSN Spaces, just passed the 1.5 million user mark, and Yahoo! has... nothing

My Take: Impeccable Logic.. Yahoo definitely needs a blogging platform to sell as business and six apart also needs to make a move either become public or get acquired. There may be action centered around bloglines as well. Incidentally,Yahoo missed being the first in providing rss feeds of queries while searching.

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