Rakuten May Purchase PopSugar For $580 Million
Rakuten Inc. is reportedly gearing up to acquire online celebrity news site PopSugar. That is according to TechCrunch who sees the acquisition happening in the next couple of weeks with Rakuten paying $580 million to make PopSugar its own.
PopSugar official site claims that 41 million unique visitors navigate through its content each month. If Rakuten ventures to pay the reported amount, $580M, for online content site, it will be an expensive deal. Especially, if we see it in contrast to AOL’s acquisition of Huffington Post — the site with 117 million monthly users at the time was acquired for $300 million.
However, this won’t be for the first time in history of Rakuten when it will make such a pricey acquisition. One of its extortionate purchases during last couple of years was of content distributor OverDrive for $410 million, accomplished in last month. This was again an indication of the company’s serious interest in content sites.
According to sources, Rakuten possesses bank balance of about $16 billion so when PopSugar’s selling was finalized and potential buyers were being sought out, Rakuten appeared as the best option for dealers.
Rakuten is a large business group in Japan with shares in many colossal businesses in multiple domains ranging from banking, e-commerce, smartphone industry, media and sports.
In the US, however, Rakuten is not very well-known. And how could it be without actually playing in the market? Rauken does seem interested to ingress in the US market as it has been reportedly investing in couple of local startups to achieve the purpose of appearing in US market. Most recent investment by Rakuten in US market was of $300 million, the company put in a ride-hailing startup Lyft.