IAC’s CityGrid Buys Remaining Stake In Social Media Analyzer BuzzLabs

IAC’s local advertising network CityGrid Media has acquired the remaining stake in social media analyzer BuzzLabs as it looks to provide additional layers of social media analysis to its marketing and publishing partners.

CityGrid was the primary backer of the two-year-old Seattle-based BuzzLabs. The company was founded by BuzzLabs was founded by former Microsoft (NSDQ: MSFT) staffers Philip Lee and Dou Shen. It was initially known as a media rep service, but as small business has begun picking up on Facebook, Twitter and blogs, BuzzLabs is quickly repositioned itself as a monitor of “sentiment” and chatter in the social media space for local marketers through its publisher network.

Small- and medium-sized local businesses have been seen as untapped source of online advertising revenues. Major media companies have been buying and partnering with companies as a way to attract those dollars. But local businesses require a good deal more hand-holding than larger marketers who often have in-house social media operations.

CityGrid hopes to offer BuzzLabs’ service as the next best thing.

BuzzLabs accepted the full acquisition offer after looking for a main partner in the local space that could help expand the use of its technology.