Hearst Ups Digital Ante: Buys Kaboodle

by Erik Sass, Thursday, Aug 9, 2007 8:30 AM ET

HEARST CORP. WENT DIGITAL SHOPPING--AND it came home with Kaboodle Inc. Billed as a "social shopping community," it allows members to browse and share product recommendations. The new acquisition will be jointly managed by Hearst Interactive Media and the Hearst Magazines digital media unit. Kenneth Bronfin, president of Interactive Media for Hearst, predicts that "Kaboodle will bring to social shopping what MySpace has brought to social media." He added that the acquisition "will enable Kaboodle to further expand its content and service offerings, while also significantly increasing its advertiser base." Kaboodle's novel take on social networking brings together consumers on the basis of their product tastes. It combines the social network function with an e-commerce platform. The site, which launched in 2006, attracts over 2 million unique visitors a month. Cathleen Black, president of Hearst Magazines, touted the synergies that will result from the purchase: "We think Kaboodle has terrific potential for many of our brands, especially in the fashion, beauty and consumer technology categories. Our readers will be able to find the products featured in our magazines, shop electronically with their friends and get their feedback." The Hearst-Kaboodle deal is just the latest in a series of acquisitions of online-only companies by magazine publishers that want to increase their online audience and build online distribution platforms for their content. In July, Hearst bought Ugo.com, described as "a first-stop destination for the latest news and content on games, movies, television, film, DVDs, music, sports, women and comic books." It mostly targets a young male audience, including more than 11 million unique visitors in the U.S. In January, the company acquired eCrush.com, along with related sites eSpin.com and HighSchoolStyleBoard. The first two sites currently have about 3.4 million registered, active users. Other magazine companies have followed suit. Time Inc.'s Sports Illustrated bought FanNation.com, a social networking and news site for sports enthusiasts, in February. The site will serve as a model for social networks built around Time Inc.'s other magazine brands. And in April, Hachette Filipacchi purchased JumpStart, an online automobile ad network, which is being integrated with the publisher's CarandDriver.com, RoadandTrack.com and CycleWorld.com properties. JumpStart's network of sites, which include NADAguides.com, Vehix, and J.D. Power & Associates Autos, reach 5 to 7 million potential car buyers a month.

CBS Acquires Social Music Site

CBS Acquires Social Music Site
BBC News
Continuing its digital push, CBS Corp. today announced the acquisition of the UK-based Last.fm for $280 million. Last.fm is a social music site that connects users with similar music tastes, helping them find new music, build their own collaborative radio stations and watch music video clips. It was founded in the UK five years ago, and now has more than 15 million active users.Last.fm founding member Martin Stiksel said an alliance with such a major media player would help the site put "every track ever recorded and every music video ever made onto Last.fm." As part of the deal, the Last.fm management team will remain in place, and the site will retain its brand--although CBS might want to think about a new name.What does the move do for CBS? CEO Les Moonves said Last.fm figures largely into the company's push to syndicate content. The company's demo also hit the media giant's target audience. CBS could make its new social network into a MySpace competitor by integrating CBS media content (like radio broadcasting) with its existing offerings. The Last.fm acquisition is the latest in a string of disparate digital moves for CBS Digital this year, which include the launch of the CBS Interactive Network, an investment in virtual world content creator Electric Sheep Co. and the acquisition of the quirky Wall Street-oriented news show, "Wallstrip." - Read the whole story...

CBS Interactive Nabs Google Exec As New CMO

CBS Interactive Nabs Google Exec As New CMOby Gavin O'MalleyAnother sign that CBS is serious about becoming a digital media powerhouse: It nabbed Patrick Keane, Google's head of ad sales strategy. As executive vice president and CMO of CBS Interactive, Keane's new mission is to market and sell CBS content over emerging platforms and expand the company's ad roster. - Read the whole story...