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Demand Media (NYSE: DMD) has made its first acquisition since its initial public offering in January, purchasing popular live blogging tool CoveritLive. The purchase will bolster Demand Media’s Pluck social media platform, which lets customers add online forums, photo galleries, and other social tools to their sites.
Pluck and CoveritLive were already closely linked; Demand Media purchased a minority stake in CoveritLive in August 2009 and had been marketing and reselling Pluck with CoveritLive to enterprise customers since.
CoveritLive, which lets users post and update content, insert video and images and set up polls and Q&A sessions — all in real-time — has been used by top sites including ESPN (NYSE: DIS), the BBC and Sky News. A premium version of the product, used by larger organizations, includes some advertising. Alternatively, customers can pay for an ad-free version.
In addition to Demand Media, CoveritLive was backed by Flagstone Capital and private investor Paul Kedrosky, who put $1 million into the company two years ago. Financial terms of the acquisition were not released.