Demand Media, a company that has made a name for itself by buying up web properties may have landed its biggest catch yet — social media platform provider Pluck. It is a cash deal for $75 million TechCrunch was able to confirm.
Since it was founded in 2003, Pluck has extended its social networking tools to some huge names such as Gannett/USA TODAY, Guardian Unlimited, Hearst Corporation, Fox, The Washington Post, Scotts and Circuit City. Demand Media, which is now branding itself as a “next-generation social media company”, will take full advantage of these relationships and use them to expand into the social networking real even further.
Demand’s chief executive (and former MySpace chief executive) Richard Rosenblatt and Pluck’s chief executive Dave Panos think this combination of the two companies can create a social networking-building powerhouse for 3rd party sites. In comments made to Mashable, the two likened their strategy to the steps Google took to move AdSense from an internal tool to a key component of many website on the Internet today.
Based on their internal statistics, Demand claims to have over 64 million unique visitors a month on its properties. Pluck, meanwhile claims to reach over 100 million users via its various social networks.