For many traditional media companies, consolidation is the way to go when it comes to developing or furthering an online presence. This strategy has proven easier and more lucrative than in-house
development for companies like News Corp., Dow Jones & Co. and now, NBC Universal, which this week announced a $600 million acquisition of iVillage.com,. More and more Web companies are enlisting the
help of mergers and acquisitions firms, ostensibly exploring the option of a sale, including TheStreet.com and weddings services operator Knot Inc. Still others, like CNet Networks, Bankrate Inc.,
Homestore Inc., Jupitermedia Corp. and PlanetOut Inc., have been rumored as takeover targets. The renaissance of online advertising, of course, is driving the new wave of Web company consolidation;
the online ad market hit $12.5 billion in 2005 and will likely reach $33 billion by 2010, according to investment bank Jeffries & Co. Much of the growth thus far has come from search, but some
analysts say the future belongs to broadband content, which provides advertisers with more options, like video.
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