As competition in the kids online space continues to heat up, Disney (NYSE: DIS) has decided to buy the assets belonging to kids and family site network Kaboose for $18.4 million. The move certainly sounds like a good one for Toronto-based Kaboose, which like a lot of smaller blogs has been dealing with greater pressures on ad revenue lately. Two years ago, Kaboose bought Amazing Moms for $750K in cash, the third acquisition it made that year.
Kaboose's sites, including its flagship and Babyzone.com, Funschool.com and Zeeks.com, will be integrated within Disney Online's stable. In an e-mailed statement, Paul Yanover, EVP and managing director of Disney Online, said that the purchase was intended to expand the company's appeal to the mom- and baby-related online space.
By David Kaplan