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MSNBC.com Acquires Newsvine

MSNBC NewsvineMSNBC.com has acquired Newsvine, a popular social news website. The acquisition is MSNBC.com's very first in its short 11-year history. Details about the acquisition can be found here in an article on MSNBC. The companies are not disclosing the purchase price.
Newsvine CEO Mike Davidson will report to Charlie Tillinghast, president of MSNBC Interactive News and publisher of msnbc.com, but otherwise, Newsvine will continue to operate independently, Tillinghast said.

Tillinghast said msnbc.com was racing to foster a community among its readers and to exploit the power of unmoderated user commentary and ranking of the news. Ideally, he said in an interview, the site would design and build its own tools, but Newsvine, a small, lean company headquartered in downtown Seattle a few minutes from msnbc.com's newsroom, "is just a great fit."

"Newsvine is local, small, nimble - they don't come with a lot of things you don't want," he said, such as complicated partnerships and contracts. "There isn't a lot to rearrange."
You can also find the story here on Newsvine and here on Newsvine's blog. Newsvine's blog post gives five reasons why the MSNBC acquisition is good.
  1. Increased exposure for Newsvine writers. Remember when Killfile broke the news of the Virginia Tech shooting 22 minutes before the Associated Press? What about when Corey Spring got an exclusive interview with Dave Chappelle? When important moments like these occur on Newsvine, why shouldn't they also be put in front of 29 million people on msnbc.com? What about when a Newsviner builds up an audience for a weekly entertainment column like Steve Watts' Lost in the Vines? Why shouldn't great content like that be put on an even bigger stage? We think it should, and although Newsvine and msnbc.com will remain independent brands, we're going to spend the next several months figuring out ways to get the best content in front of the biggest audiences possible.
  2. A bigger, more diverse community. Msnbc.com's user base is spread across the world in every age, income, and demographic group. You'd be hard pressed to find a town in the United States which doesn't count some of its residents as readers. It is our hope that eventually, readers of both Newsvine and msnbc.com will be able to jump from site to site and share in the benefits that each destination offers.
  3. Speed, reliability and uptime. As a cost-conscious startup, Newsvine has made do with an efficient hardware footprint and no full- time operations staff. The upshot of this is keeping expenses down. The downside, however, is that during heavy spikes of activity and off-hour periods, the site can occasionally slow down or seem less reliable. Under this new partnership, Newsvine will move to the geographically redundant, world-class data centers that house msnbc.com. Bigger, faster machines and more of them. 24/7 monitoring. There may not be a news site in the world which scales better than msnbc.com, and we look forward to benefiting from their excellent infrastructure.
  4. A slightly bigger staff, able to evolve the site and provide features and support to the community without cutting any corners. Thus far, each Newsvine employee has had to wear a great variety of hats, and in some instances we have been strung very thin. The ability to add staff members in needed areas is crucial to our success as a business, as a web site and as a community. We look forward to providing excellent support and service to our users as our community grows dramatically during the forthcoming months and years. The team that set out to create the vision from day one will be freed up to continue developing the features and tools that make the magic of Newsvine possible. We will be armed with the resources and access to bring the best content produced by Newsviners to the world at large - bridging the gap between citizen and journalist.
  5. More news and images from more sources. Newsvine's mainstream news and images have always come directly from the Associated Press, and in fact, being the quickest wire-to-web news site in the world has always been something we've taken a lot of pride in. However, with the welcoming of msnbc.com into the fold, we now have the potential to bring you more of the best reporting in the world and some of the most stunning news imagery you'll ever see online.
Those are the positives above. This post on Loose Wire discusses some of the negative things that can happen when old media acquires a web community. Read/Write Web says MSNBC.com will be getting the following with Newsvine as far as the traffic and size of the community go.
What is MSNBC getting, other than a slick and feature-packed website? Newsvine is also a thriving Citizen Journalism community, with solid stats. In our July review of Newsvine, we noted that Newsvine gets about 1.2 million unique visitors per month and it has grown at an average rate of 46% per quarter. Newsvine community members view an average of 21 pages per day and spend an average of 143 minutes per month on the site. The site gets about 80,000 comments a month and 250,000 votes a month.
Paid Content is guessing the price was in the $5-$7 million range.

Tags: newsvine | msnbc

Posted on October 8, 2007
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