Yahoo Buys Rivals.Com -- First Deal Under New CEO

Jun 21, 01:36 PM

Current Headlines: SAN FRANCISCO (AP) -- It's not the blockbuster that some industry analysts envisioned, but Yahoo Inc. has sealed its first deal under new Chief Executive Jerry Yang.

Hoping to deepen its appeal to hard-core sports fans, Yahoo is buying Rivals.com, a Web site that provides extensive coverage of collegiate athletics.

Financial terms of the acquisition to be announced today aren't being disclosed -- an indication that the sales price is too small to dent Yahoo's finances.

Analysts believe Yahoo may be considering more dramatic moves after changing its leadership earlier this week in its latest attempt to revive its sagging stock. Yahoo appointed Yang, its co- founder, to replace Terry Semel, its CEO of the past six years.

The wide-ranging suggestions about what Yahoo should do next have included bidding for Facebook Inc.'s popular online social networking site or combining with Internet auctioneer eBay Inc. or Microsoft Corp.'s MSN.com.

News Corp., a media empire controlled by Rupert Murdoch, reportedly has even offered to swap MySpace.com -- the most trafficked social networking site -- in exchange for a 25 percent stake in Yahoo. If it were consummated, the transaction would be valued at more than $10 billion, based on Yahoo's current market value.

For now, the Rivals.com deal will intensify Yahoo's competition with News Corp.'s online division, which already owns a similar site called Scout.com.

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