Dow Jones Swallows Marketwatch
Last week, we mentioned the consolidation taking place within Financial Media.Predicatably, a deal was reached over the weekend when Dow Jones snagged CBS Marketwatch for $18/share or $ 519 million dollars.
Thev deal resulted in Dow Jones roughly tripling thier grab of the market. Dow Jones' WSJ.com averaged 2.8 million "unique visitors" every month. MarketWatch, which is a free site, had 7.6 million visitors.
As Barry Ritholtz, Chief US Economist at Maxim Group, explains, "the purchase will give Dow Jones a 'dual' model: a high end subscription site, including Barrons and WSJ, and a higher traffic, free site." Ritholtz adds that we should expect "economies of scale and creative advertising packaging (different sites with different demographics)to make this work on an ongoing basis."
With this deal completed, Catablast! is keeping a close eye on the companies who got squeezed out of the deal room--especially Yahoo!
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