Yahoo, CafeMom Understood To Be In Acquisition Talks


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Millions of mothers may soon become much better acquainted with Yahoo.  Rumor has it that CafeMom, the popular site aimed at female parents, is close to being acquired by the company, although the matter of price apparently remains a significant sticking point.

According to Kara Swisher's anonymous sources, Yahoo's prepared to pay $100 million.  CafeMom would like to see $200 million instead, so the deal isn't a sure thing.

Still, setting aside financial issues, the acquisition would make a fair amount of sense for Yahoo.  A CafeMom "About Us" section is quick to point out, "As the #1 media property for moms, CafeMom reaches 6.7MM unique visitors per month on (comscore, May 2010) and 18MM+ unique visitors per month on CafeMom Plus (comscore, May 2010), a boutique network of sites that reach moms and parents."

It's not like CafeMom is only about eyeballs, either, as the section also noted, "CafeMom was profitable in 2009 and expects even more rapid revenue and profit growth in 2010."

So Yahoo could to some degree justify the purchase to investors and dangle the site in front of advertisers, showing off its track record and traffic numbers.  Which is more than anybody can say for at least one or two other acquisitions the company's made over the years.

We'll see what happens.  Yahoo's stock finished the day up 1.09 percent, anyway, giving the company a larger market cap.