Have You Googled "Yahoo Acquires Associated Content" Lately?

Yahoo recently acquired Associated Content (AC) in order to turn AC into a reality internet show - the first ever of its' kind. Yahoo already has Google double-checking its' ad-sense figures to make sure Yahoo's acquisition of Associated Content isn't, somehow, underhanded. After all, Yahoo and Google are chief competitors of each other.

Prior to the acquisition, Associated Content articles appeared higher on Google search engines than Yahoo search engines. Part of this is due to Associated Content's relationship with Google. If an AC article is posted as news, it gets filtered to Google news. The advertising on Associated Content's website is Google Ad-sense advertising.

In the old paradigm, Google paid Associated Content to host advertising that generated traffic to advertising clients. It's not all Google Ad-sense, don't get me wrong. There's other advertising as well. However, with regard to Google, they would pay Associated Content who would, in turn, pay its' writers (although not necessarily in that order).

One must look at this equation from Yahoo's perspective. If I were Yahoo, and I saw Google building a relationship with a content writing website like Associated Content, I would worry about a possible acquisition. I would wonder what would happen if Google purchased Associated Content. But, that's if I was Yahoo. I'm not. I'm LIVIN.

By acquiring Associated Content, Yahoo has potentially accomplished a couple positive goals. First of all, they have entangled themselves with Google. Yahoo suddenly owns a large Google Ad-sense account - the one that used to belong to Associated Content. The more I think about this, the more I think it must be a smart business move on the part of Yahoo. Yahoo has purchased the opportunity to learn about its' chief competitor - Google - and how they make money - via Google Ad-sense.

In the old paradigm, Google would make money on Google Ad-sense advertising on the Associated Content website. In the new paradigm, Yahoo will also make money on those same clicks Google will continue to make money on. From a Business 101 standpoint, that sounds like smart money-making. Finding a method your chief competitor utilizes to make income and being able to use it to your advantage will get you places in the business world.

Without Google even noticing, Yahoo slipped its' hand onto Google's, shook it and solidified a partnership in advertising. Google didn't even see it coming. If nothing changes, Yahoo and Google will remain partners in making money on the website Associated Content.

However, life is change...

At least a few people at AC have reported on the acquisition, including Han Van Meegerin here. Many people in the greater AC community were getting riled up over one inaccurate sentence that appeared in one news article about the acquisition. I didn't think it was anything to get riled up about. Turns out, it wasn't. It was a mistake in wording. The deal will be done in the third quarter, not AC. Never fear, anxious, antsy writers. It was a mistake. I thought that was the end. No. I forgot, Yahoo purchased AC for a reality internet show. They succeeded, too. Merely two days after the acquisition was made public, there are talks of a writers union to be formed by writers of AC. I'm not going to weigh in on what side of a writer's union I would land on, but I will weigh in on the catalysts for such talks.

I'm surprised at how crazy things have seemed around AC the past couple days. People are going crazy because they weren't told an acquisition was going to happen. Seriously? That's circa $90 million (maybe $80 - $100, depending upon reports). There are laws that prevent you from being told. Ever heard of the Securities and Exchange Commission? Public companies have many rules to abide by. So, in essence, people need to calm down, because now Google and Yahoo both like Associated Content. And, they are both, in some small way, tied to AC, monetarily.