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Friday, March 26, 2004

Yahoo Continues Acquisition Blitz, Gobbles Up Kelkoo

European shopping comparison site Kelkoo has been acquired by Yahoo for $575 million.

We won't say the purchase was "long-rumored," but it doesn't come as a massive surprise, either. A recent email exchange with a person close to Kelkoo, in which I speculated that Kelkoo was going to have to partner with a company such as Google or Yahoo, was deemed "interesting."

A possible part of the reason Kelkoo needed to sell to the highest bidder now is that they've relied significantly on organic Google traffic in the past. With Google likely only too happy to 86 competitors' shopping-oriented pages from its index (or at least play God with their rankings), and Yahoo ending its search partnership with Google, a Kelkoo might have faced rising marketing costs if it wanted to gain exposure on a major portal.

Posted by Andrew Goodman




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