Yahoo Inc.
(
YHOO
) has announced a content deal with Wenner Media, in line with
its strategy of striking content-sharing deals with entertainment
media brands. The financial terms of the deal were not
disclosed.
Headquartered in New York, Wenner Media is a privately-held
company, which publishes Rolling Stone, Us Weekly and Men's
Journal. The company boasts monthly sales of 42 million in print
with more than 22 million gross unique visitors to its
portals.
Per the deal, the editorial teams of both the companies will
work together to produce new editorial franchises on
entertainment. Both Yahoo and Wenner Media content will be
cross-promoted on Rolling Stone and Us Weekly websites, and
Yahoo's entertainment sites such as Yahoo music and omg!.
The partnership is expected to benefit both companies over the
long term through further user engagement. Rolling Stone and Us
Weekly will be able to expand its user base and expand their
digital footprint through a digital media giant that serves 167
million unique users a month, according to comScore.
Good content is vital for a company serving ads, as the number
of users it attracts is directly proportional to the ad revenue
it generates. We believe that Yahoo! will continue to pursue this
kind of content sharing deals in order to boost its online user
base going forward.
Yahoo already has a number of content sharing deals with
companies like CNBC,
Walt Disney
's (
DIS
) ABC Television Group, Spotify and Clear Channel. Though the new
CEO, Marissa Mayer is focusing more on the company's product
developments, this partnership clearly indicates that Marissa is
not ignoring other growth areas and is looking to protect Yahoo's
share in the display and video ad market.
Yahoo has come out with better-than-expected third quarter
results, with non-GAAP earnings up sequentially as well as year
over year and exceeding the consensus estimate by 11 cents.
However, a turnaround in the company's business still remains a
big task for the new CEO given Yahoo's declining position in
display and search and the monetization issues related to
Microsoft's search platform. Yahoo also lags in several emerging
segments, such as mobile, social and the cloud.
The company is fighting the likes of
Google Inc.
(
GOOG
),
Microsoft Corp.
(
MSFT
) and
Facebook Inc.
(
FB
). However, despite its struggles in the recent past,
partnerships of this sort are likely to boost investor
sentiment.
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