AFI BLOG: Media and Technology

Internet Brands Goes Into Overdrive - The Los Angeles Business Journal

Web 2.0 company is on a buying binge.

Internet Brands Inc., which pioneered online auto buying with CarsDirect.com, is becoming a powerhouse in all manner of content.

The company went public late last year and has since acquired a dozen Web sites. During all of 2007, it swooped up 45.

This year, Internet Brands will look to continue this pace by spending $20 million per quarter on similar acquisitions.

“We want to keep growing,” said Lisa Morita, chief operating officer. “Our only constraints are keeping up with the growth.”

The company buys up online communities with user-generated content that draws high traffic in consumer categories such as cars, home and travel. A key distinction of the sites is development of loyal communities that result in frequent visitors. Examples include
Mercedes-Benz community MBWorld.org, cycling site BikeForums.net, and home improvement site DoItYourself.com.

Each enjoys traffic of up to 1 million unique visitors every month, providing advertisers with an engaged, passionate audience willing to spend money on specialty interests.

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