Demand Media (NYSE:DMD) Acquires CoveritLive

Operating in line with their business model, Demand Media (NYSE:DMD) announced it has acquired CoveritLive for an undisclosed amount.

Demand Media's no stranger to sniffing out where the action is. The dot-com media mogul routinely taps its growing army of freelancers for timely content that it can monetize effectively and position well for maximum exposure. It reaches an audience of more than 100 million people through its arsenal of websites.

CoveritLive also has its pulse on what's happening. It provides a multimedia platform for companies and bloggers to cover live events, attracting more than 60 million people a month.

Both companies are eyeball magnets, but they differ greatly in their content acquisition and monetization.

Demand Media pays its freelancers just enough to keep them happy, but without sacrificing an article's profitability. CoveritLive doesn't have to pay its content creators at all. Live bloggers are happy to have a free platform where they can speak their mind with interactive tools for free. Event attendees are also just as happy to be there.

This disparity doesn't mean that CoveritLive is more profitable than Demand Media. In fact, it's probably not. Terms of the acquisition or CoveritLive's financials aren't being disclosed. However, it would be a shock if CoveritLive was firmly in the black.




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