Yahoo Purchases Associated Content … for $6 Per Unique?

Six years of hard work, building an Internet content business … and $6 per unique is the reward? Yahoo’s acquisition of Associated Content has set a value for the type of content written from Associated Content, and it’s six bucks lifetime (~$100 million from Yahoo divided by ~16 million monthly uniques for AC in comScore = ~$6.25).  The publishers partnering with AC have their own revenue sources to layer on top of AC’s written content (brand reputation, image assets, etc.), but it’s still a $6 per unique value proposition.  Lifetime.

Two takeaways:

1. Content needs a valuable brand to support it. The brand’s value will be the main separation between a content mill and a sellable element.

2. Content needs to have redeeming value, whether as information or entertainment. There’s a market for the “how to” sites of the world, but we now know the value of this market (six dollars a head, lifetime).  I enjoy working in media because of the high quality of content produced by media professionals.  It’s not much more work for an individual to build something that’s worth more than six dollars a head.  Lifetime.

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