I just had to say it.
But the news is everywhere, and it’s worth mentioning here: Hearst bought social shopping site Kaboodle for a rumored $30mm (the exact amount undisclosed), which has achieved a 2MM unique user run / rate / month and inked a deal with eBay to power MyCollectibles, a site where users showcase their collections.
At its core, Kaboodle is a bookmarking service but found its niche in helping users collect research items for shopping purposes. Users can then discover each other and make recommendations on items. More information is here at CrunchBase.
I think it’s a unique play for Hearst, which is said to have bought it to help recommend products it features in magazines like Cosmopolitan, Esquire, Oprah Magazine, Popular Mechanics, Redbook and more.
Further, it’s refreshing to see that the usual players — Google, Microsoft, Yahoo! — aren’t the only ones making acquisitions in this space. While some people think that the Web 2.0 boom is too dependent on the M&A market, it looks like players in MSM are now getting on the acquisition bandwagon as a hedge against the disappearing print ad market.
Regardless of the reasons behind the acquisition, this is a unique pairing that I hope to see play out strongly. There’s room for innovation in the social shopping space (Pronto being the biggest player to grasp this successfully) and I can’t wait to see how it develops.
Written by Scott Hurff — scott.hurff at channeladvisor dot commm