Yahoo Inc. (YHOO - Analyst Report) 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 - Analyst Report) 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. , Microsoft Corp. (MSFT - Analyst Report) and Facebook Inc. (FB - Analyst Report) . However, despite its struggles in the recent past, partnerships of this sort are likely to boost investor sentiment.