Yahoo has announced that it will be acquiring Associated Content, a producer of content for the web that stands alongside the likes of Demand Media and AOL's Seed.
The details (opens in new tab) of the deal have yet to be made public but at least two sources mention that the price Yahoo paid for the outfit lies between $90 million and $100 million, which anyway is much smaller than the $150 million that AC wanted only a few months ago.
As part of Yahoo, Associated Content will be able to access more than 600 million users monthly and the acquisition kind of make sense for Yahoo who has been looking to move away from search since its strategic partnership with Microsoft allowed it to refocus on marketing and advertising.
But for some reason, rather than following AOL which passed on the opportunity of buying AC last year only to launch its own rival, Seed, Yahoo apparently wanted to move faster into the crowded content crowdsourcing field.
It does give the former darling of the internet a ready to use platform and a solution that can churn out content cheaply. AC is only five years old but has nearly 400,000 contributors who together have published more than two million pieces of content which have generated 1.75 billion page views.
Arguably the risk here is that it heralds a new era where search engines and portals produce their own content, a very dangerous and slippery slope indeed for them and other content producers.