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Summary:

Yahoo will announce tomorrow it has bought collegiate sports site Rivals.com. The news is available due to what seems to be a publishing timing error on an Associated Press story by an Austrian web publication. Yahoo is describing the deal as Jerry Yang’s first as CEO, […]

Yahoo will announce tomorrow it has bought collegiate sports site Rivals.com. The news is available due to what seems to be a publishing timing error on an Associated Press story by an Austrian web publication.

Yahoo is describing the deal as Jerry Yang’s first as CEO, though recently ousted CEO Terry Semel’s regime had initiated discussions. Financial terms are not being disclosed. It’s clear Yahoo is trying to move forward with normal activities, but this is not going to displace scrutiny of its rearranged management and reported complicated partial sales talks with News Corp.

Rivals.com runs a subscription business, charging $10 to $100 per month to 185,000 subscribers. Its peak traffic was 2.57 million visitors last September at the kickoff of college football season, according to comScore figures cited by the AP. Yahoo’s sports section, second in the category to ESPN.com, had 15.1 million visitors last month.

The AP notes that News Corp, which Yahoo is in those complicated transaction discussions with, owns Rivals.com competitor Scout.com.

TechCrunch had previously published a story saying the acquisition was being held up due to its CEO Shannon Terry’s alleged involvement in securities fraud; it later published another story when the CEO’s legal team threatened suit. According to the AP, Terry “will be retained by Yahoo.”

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  1. If this is true, this is a much smarter move than the ridiculous My Space deal ! Go for it Yahoo !

  2. “Another recent SEC enforcement action could end up setting legal boundaries for actions against online newsletters. In mid-May, the agency alleged in a lawsuit that Shannon Terry, a writer for another Internet newsletter, SGA Goldstar Research, ran afoul of the securities laws by netting $850,000 in free stock for touting Systems of Excellence–whose former chairman was recently jailed for stock fraud–as well as 17 other stocks. Terry’s lawyer, S. Lawrence Polk, says that he is vigorously contesting these allegations.

    If the Terry case is litigated, it might well resolve a crucial issue–how much people can say about investments on the Internet without running afoul of the law. Chelekis and SGA both disclosed that companies pay to get their names on their Web sites. But the SEC has asserted that newsletters must disclose the specific payments they receive for each stock. ”The SEC has never issued regulations saying exactly what you have to disclose,” Polk maintains. Despite the SEC’s actions against Chelekis and SGA, other newsletters on the Web often fail to disclose how much they get from companies that they feature on their Web sites.”

  3. Pre Pro Sports Thursday, June 21, 2007

    I’d like to see if you took all of the investment money spent on Rivals.com over the past 15 years, if the net of the rumored $100 million payout would actually come to any level of profit for the initial investors.

    Regardless, Rivals is a top brand in the college football recruiting space and Yahoo! should benefit if they don’t manage it out of productivity.

  4. VeronicasLore.com » How To Make Money on Facebook Thursday, June 21, 2007

    [...] Gigaom.com [...]

  5. Complete List of 2007 Web / Technology Acquisitions » The StartUp Blog at PartnerUp Wednesday, May 21, 2008

    [...] scores of games and keep up on the happenings of their favorite teams. Press Release | TechCrunch | GigaOm| Mashable | [...]

  6. Beware…Rivals.com must be canceled by phone. A simple email to customer service explaining your request to cancel your free 7 day membership is not good enough. They are only an internet company. They can’t handle an email to request cancelation.

    I don’t understand the reason Rivals.com has to try to punish the free trial members. It may be due to the lack of valuable content offered to actually retain members further than the 7 day trial.

    Be Sure to call 866-274-8257 to cancel your Rivals.com membership

    Post your feedback with your experience with Rivals.com here.

    Shouldn’t Rivals.com give users a service management page where they can cancel the subscription?

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