NONE: Re: ONLINE-ADS>> Zapata is nuts...
Re: ONLINE-ADS>> Zapata is nuts...
vijay_at_webpage.com
Mon, 20 Jul 1998 10:00:19 -0500 (CDT)
> My basic point is this: If Avie Glazer thinks lots of advertising is all it
> takes to make the sites he bought market leaders, he's sadly mistaken.
> Longterm online publishing success takes good content.
Richard, if you look at their "done deal" acquisitions (e.g Word,
Charged etc) your observation is correct. However, if you look at
their newer acquisitions that are currrently at an LOI stage
(i.e. pending and expected to happen) e.g. Starting Point, Chat Planet,
Galt Shareware etc, these call all be characterized as "distressed properties"
that do not generate original content, and therefore your concern about
the cost of generating original content does not apply. Instead,
these are properties that can potentially achieve a high ratio of reach to
original content, and have a viral multiplicative effect on reach,
and funnel traffic to other properties.
It appears the strategy may be to buy "distressed" properties at a discount
(admittedly from the sky-high valuations of the day) and aggregate
them to obtain reach and visibility, and then leverage that reach
and visibility to the advantage of the publishing properties that
they own. Seems like a reasonably interesting strategy that should
not be written of lightly.
If you believe Michael Wolff's observations in his recent book "Burn Rate",
and his claim that the dirty litttle secret of the 'net is that nobody
reads internet content, this may actually turn out to be pretty smart.
While I am not saying I believe this strategy, I dont think this should
be written off as "nuts" ...
- Vijay
--------
Vijay Vaidyanathan
Chief Technology Officer
XOOM Inc.
vijay_at_xoom.com
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