A video still from a demo of CoverItLive from its website
(WEB HOST INDUSTRY REVIEW) – Social media company Demand Media (www.demandmedia.com) has acquired liveblogging tool CoverItLive (www.coveritlive.com), according to a report by TechCrunch on Thursday. The company has not disclosed the terms of the deal.
This acquisition comes two months after Demand Media went public for $112.5 million. The company is listed on the NYSE under the ticker symbol DMD.
Demand Media was founded in 2006 by former MySpace chairman Richard Rosenblatt, and is parent company to how-to website eHow.com and domain name registrar eNom.
CoverItLive is used for liveblogging events in real-time. TechCrunch says that it was used to liveblog the Oscars on several celebrity news outlets like People and TMZ. There are several other comparable services, including ScribbleLive.
The acquisition comes two years after Demand Media made a strategic investment in CoverItLive.
“CoveritLive really reflects our mission as a company – publishing what the world wants to know and share,” Rosenblatt said in a statement. “Consumers around the world are tuning in by the millions to participate in live events powered by CoveritLive, collectively spending over a billion minutes on the platform each month.”
Founded in 2007, CoverItLive is based in Toronto, Canada.
According to TechCrunch, Demand Media’s share dipped amid speculation around changes Google made to its search algorithm. Since Demand Media is a content farm, TechCrunch says it relies “on Google search traffic and a change in ranking could negatively effect” its business. The stock seems to have recovered quickly though, suggesting that the Google change migth not have actually hit the company too hard.
In a recent statement, Demand Media said the change in Google’s search is just one component of its ecosystem.
About Nicole Henderson
Nicole Henderson writes full-time for the Web Host Industry Review where she covers daily news and features online, as well as in print. She has a bachelor of journalism from Ryerson University in Toronto, and has been writing for the WHIR since September 2010. You can find her on Twitter @NicoleHenderson.
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