Citizen news site NowPublic has been sold to another company in the "hyperlocal" space, Examiner.com, the two companies announced Tuesday.
The two sites will operate independently, but Examiner will integrate NowPublic's technology into its site and will encourage NowPublic's contributors to also write for Examiner--right now, the buyer says it has grown 200 percent since the beginning of the year (it launched in April 2008) and has 15,000 active contributors, hoping to hit 30,000 by year's end.
NowPublic's executives, including CEO Leonard Brody, will join the management team of Clarity Digital Group, parent company of Examiner.
"Every day, we hear discussions about whether hyperlocal content will ever be scalable, sustainable, or profitable as a business entity," Examiner CEO Rick Blair said in a release. "With the acquisition of NowPublic, we have the technology to further engage our community of more than 17 million unique visitors per month, and distribute our stories in new and innovative ways."
Was this a bargain-basement acquisition? The companies did not disclose financial terms. But an insider in the space told CNET News that NowPublic had been shopping itself to some pretty big media companies for some time at a higher price than potential buyers were willing to pay. The company had raised about $12 million in venture funding.
Many media companies have simply been launching their own "citizen journalism" initiatives, like CNN's iReport and blogging experiments from newspapers like the Washington Post, which could make an exit tougher for the smaller players.
Digital-media companies like AOL and InterActiveCorp have also made plays to dominate the local-news market--AOL recently acquired local-focused start-ups Patch and Going, the former of which was already a personal investment on behalf of CEO Tim Armstrong, and the Barry Diller-run IAC has been placing a big emphasis on business directory Citysearch.
CNN is close to expanding its "iReport" user-generated reporting initiative into a separate Web site, MediaWeek wrote Monday.
The new site, to be hosted at iReport.com, will be a repository for user-submitted news content--video, audio, and photos. Visitors can navigate through categories of news (like sports, weather, and politics), rate content, and embed it elsewhere on the Web. Contributors will be able to create profiles, and regulars can build up individual followings. As for filtering, the new site will be moderated once content has already been posted to the site; this is a change from CNN's current strategy with iReport, in which only select contributions are posted to CNN's Web site. This obviously means that the news runs the risk of inaccuracies and pranksters, but one could assume that moderation as well as community interaction could keep the fake-news factor to a minimum.
Right now, hubs for "citizen journalism" on the Web include well-backed companies like Current Media, which recently filed for an IPO, as well as start-ups of varying size like NowPublic and GroundReport.
CNN first launched the iReport project in August 2006, and since then has received over 100,000 photo and video submissions, according to MediaWeek. In October, the Time Warner-owned news brand established a presence for the initiative in virtual world Second Life.
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