Yahoo has acquired BuzzTracker, a news aggregator combining editorial judgment and algorithms taking into account how many times the story was blogged, and how recently.
This acquisition is aimed to expand the scope of their advertising on the web. They are trying to challenge Google in this space. The two companies did not reveal the financial aspects of this deal.
BuzzTracker founder Alan Warms joins Yahoo as the general manager of News, along with his team. He is tasked with using the BuzzTracker technology to help improve the breadth and relevancy of Yahoo News content,regardless of the source.
"The decision to sell the business and move to Yahoo! was relatively simple. As anyone playing in the online space understands, online media is all about scale. The ability to garner real CPMs, the ability to sell ads directly, the ability to provide innovative solutions to advertisers, all depend on having tens of millions of unique visitors," Warms wrote on his Participate Media blog.
BuzzTracker claims on their website that they keep a track on more than 1,000 topics on more than 90,000 blogs. These pages would now be used to add content to Yahoo’s news service and would provide an alternative destination to services like Digg.com.
Market sources claim that Yahoo paid close to around USD 5 million for this deal.