Hearst Continues Digital Shopping Spree

Publisher Picks Up Two-Year-Old Kaboodle

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NEW YORK (AdAge.com) -- Hearst Corp. has made its second interactive acquisition in less than a month, this time striking a deal to buy Kaboodle, a "social shopping" site where visitors can recommend products and network with people who share their tastes. Terms were not disclosed, but outlets such as TechCrunch said the price paid to Manish Chandra, the site's founder, topped $30 million.
Hearst Corp. has acquired the 'social shopping' site Kaboodle.
Hearst Corp. has acquired the 'social shopping' site Kaboodle.

In July, Hearst bought UGO Networks, a much larger deal that delivered a suite of men's lifestyle sites about games, movies, TV, movies, music, sports, women and comic books, even if there wasn't much connection with established Hearst magazine brands such as Esquire and Seventeen.

New brands
Building or buying new brands is a growing tactic among traditional publishers as the limits of web versions of print magazines become clearer. But Hearst said Kaboodle, a 2-year-old brand, will complement its magazine business nicely.

"We think Kaboodle has terrific potential for many of our brands, especially in the fashion, beauty and consumer-technology categories," Hearst Magazines President Cathleen P. Black said in a statement. "Our readers will be able to find the products featured in our magazines, shop electronically with their friends and get their feedback. It's another means for making sure our readers stay engaged in today's saturated media landscape."

Kaboodle will be managed by both Hearst Interactive Media and Hearst Magazines' digital unit.
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