Buying Sites with a Built-in Audience

Established players such as AOL or IAC are snapping up tiny media outfits--like Urban Baby--that have built Web sites tailored to popular niches

Time Warner's (TWX) AOL wanted to expand its reach from casual video game players to the rapidly growing hardcore gaming market. But instead of creating a sub-channel from scratch, on Aug. 16 AOL's Games division purchased GameDaily, a site that claims to reach around 4.5 million hardcore gamers a month and whose 13 employees put out a newsletter that reaches an estimated 15,000 industry professionals. (GameDaily is a content partner of's Innovation and Design channel.)

To continue reading this article you must be a Bloomberg Professional Service Subscriber.