News Corp. (NYSE:NWS) has said that it plans to spend more on bulking up its Internet offerings, and on Monday the company announced yet another stab at making that plan a reality. News Corp. is buying two Web startups, Newroo and kSolo, for an undisclosed sum.
News Corp.'s Fox Interactive Media unit, which was formed for the express purpose of snapping up Web properties, is buying the two companies, both of which seem to fit into current trends in Internet recreation. Newroo helps users mine the Internet for specific content they'd like to add to their own websites, and kSolo is an Internet karaoke service, which includes a database of songs so that people can record themselves singing their favorite tunes. Both definitely bring to mind user-generated content that has become prevalent recently (even if that user-generated content may include singing wildly off tune, but hey, I suppose it could appeal to the American Idol in all of us).
MySpace.com is News Corp.'s most well-known technology purchase -- by snapping up that fast-growing and popular site through its acquisition of Intermix last year, News Corp. quickly got its Internet profile way up to speed, despite the fact that the media conglomerate was a bit late to the game. Head honcho Rupert Murdoch has also made it clear that News Corp. will find new ways to enhance the MySpace experience in the coming year, including messaging applications and the integration of video.
News Corp. has its work cut out for it, considering the fact that it faces well-known Internet veterans such as Yahoo! (NASDAQ:YHOO), Google (NASDAQ:GOOG), Time Warner's (NASDAQ:TWX) AOL, and Microsoft (NASDAQ:MSFT), all of which are deeply ingrained in the Internet experience -- and dedicated to the idea of getting as many Web users on board as possible.
Laugh at karaoke if you will, but both these purchases sound like they will fit in very well with the tools being offered at MySpace (the company said that they will be available across all its Internet properties). Indeed, according to CNET, the president of Fox Interactive Media said that these acquisitions "demonstrate our commitment to empowering users with interesting tools that they can use to further enhance their online experience and online identity."
News Corp.'s last quarter was described as lukewarm by one Fool, so it's no wonder that the company is eager to upgrade its Internet offerings. News Corp. shareholders should look forward to more of the same over the next several months; they'll be hoping that these acquisitions are all smart ones, well worth the capital expenditures, and positioned to take best advantage of current Internet trends.
For related Foolish content, please see the following articles:
- News Corp. buys a stake in Simply Hired.
- Yahoo! joins the mashup trend.
- Revisit News Corp.'s last quarter.
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Alyce Lomax does not own shares of any of the companies mentioned.
