If you're an online content provider, you're not being paranoid. They really are out to get you. Last night New York Times
Sure, all three of these companies weren't true indies. About is being handed over by magazine giant Primedia
Yet the common thread here is that all three popular sites are going into the portfolios of companies best known for their flagship newspapers. So what's the attraction? Is it that black ink doesn't smear onto your fingers as you click around Web pages? Is it that the virtual delivery boy can nail every house on the wired planet with one published heave?
Behind every company with a great reason to buy lies a company with a great reason to sell. These deals haven't come cheap so what do the newspaper companies see that the trade periodicals giants and operating system software juggernauts don't? The reason may be that they fear growing irrelevant. Sure, they have all established busy sites to dispense their news and features, but there is more competition online than there is on your front porch. These companies know how important eyeballs are because they have been fed circulation metrics since birth. They also have established relationships with mainstream sponsors and that will help fortify the business models now that online advertising is growing strongly.
So what's black and white and red all over? If you're an online content site, the red is the laser sight pointed at your head. The black-and-white print world is aiming your way. Make sure you don't go down without a fight -- or a worthy premium.
As long as your keyboard is clean, why not click on more related Foolishness:
- Read about Washington Post digging for Slate.
- Then check out why Dow Jones was all over MarketWatch.
- Brush up on other takeover scuttlebutt.
Longtime Fool contributor Rick Munarriz loves the Internet, but he still reads his paper every morning. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
More from The Motley Fool
Better Buy: Seaspan Corporation (SSW) vs. Navios Maritime Midstream Partners L.P. (NAP)
Both shipping companies focus on owning vessels signed to long-term contracts, providing them with a steadier stream of cash flow.
4 Good Things in Goldman Sachs’ Earnings Report – and 3 That Have Me Worried
The investment bank beat expectations on the top and bottom lines, but there were real areas of concern as well.
This High-Yield Stock Was Just Too Cheap Not to Buy
After shoring up its financial situation last year, this pipeline company should supply investors with a generous income stream for years to come.