Fox Gets More Web 2.0
Using some of their $2 billion in acquisition resources, News Corporation’s Fox Interactive Media (FIM) segment purchased two relatively new Web 2.0 companies named Newroo and kSolo.com. Both sites focus on user-generated content. The details of the deals were not revealed.
KSolo.com is an online karaoke-based site that allows users to sing songs, record them, and send them to friends or post them in the form of a Webcast for the community to listen to and give their feedback.
Newroo offers a content aggregator tool which allows users to add vertical news feeds to their sites.
In a statement, FIM president Ross Levinsohn said that the deal was about discovering “early stage, technically savvy Web 2.0 companies.” This is part of FIMs plans to increase their online traffic in order to increase its Web advertising revenue.
Since the recent trend seems to indicate that younger Web users flock to communities that center around user-generated content, it is logical for FIM to acquire two such companies that allow them to boost their online ad revenues.
News Corp. has already begun its progress towards this direction with the enhancements it has made to its sites related to new, entertainment, and the dissemination of personal perspectives. An example of this is the new “MyIdol” tab on Americanidol.com, which allows users to post on forums and create American Idol-related blogs.
The acquisition of kSolo seems to be a logical fit for Fox’s Americanidol.com, while Newroo appears to have potential integration with many of Fox’s sports and news sites.
Sources:
http://www.internetnews.com/ec-news/
article.php/3602891
http://www.clickz.com/news/article.php/
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