On April 15th, 2021, Etsy Incorporated, a well-known online marketplace, announced that it had acquired Gizmodo Media Group from Univision Communications Inc. for $40 million. Gizmodo Media Group consists of a number of popular consumer-focused websites, such as Gizmodo, Jezebel, and Splinter. The deal will bring new content and millions of new eyeballs to the Etsy platform. The acquisition is yet another aggressive move by Etsy to expand its marketplace and services to new audiences, and stands to help the company continue to reap significant profits in a highly competitive market.
This blog will discuss the impact and implications of the Etsy and Gizmodo Media Group deal. We will look at what this deal means for Etsy, Gizmodo, and the wider market. We’ll also answer some FAQ’s and provide related examples in detail.
What Does This Deal Mean for Etsy?
Etsy’s acquisition of Gizmodo Media Group is part of the company’s ongoing effort to expand its range of products and services, and to increase its reach to new audiences. The Gizmodo Media Group consists of a number of commercial consumer-focused websites such as Gizmodo, Jezebel, and Splinter. By combining these websites with its own marketplace, Etsy will be able to gain access to millions of new potential customers and readers, as well as a vast array of additional content and services.
In addition to Gizmodo’s website, Etsy also acquired some of Gizmodo’s proprietary technology. This includes Gizmodo’s subscription management platform, as well as its advertising data and analytics platform. With these new tools, Etsy can now better target its advertising campaigns, analyze user and market data, and offer new services and features to its users.
What Does This Deal Mean for Gizmodo Media Group?
The acquisition by Etsy is a great step forward for Gizmodo Media Group. As part of the deal, Gizmodo will continue to operate as an independent business unit with its own editorial and business teams. Gizmodo will also benefit from the technology and resources of Etsy, allowing it to broaden its reach even further.
Moreover, the deal will also help Gizmodo to diversify its revenue streams. Etsy will be able to leverage Gizmodo’s proprietary technology to better target ads and analyze user and market data. In turn, this will result in more revenue for Gizmodo.
What Does This Deal Mean for the Wider Market?
By combining the two companies, the Etsy and Gizmodo deal will have significant ramifications for the larger market. This merger will created a formidable competitor to Amazon, eBay, and other major players in the e-commerce and media markets.
Moreover, it will also create a substantial new player in the advertising market. With Etsy’s access to Gizmodo’s technology, as well as its large user base, the company will be better able to target and analyze ads. This could lead to significant shifts in the way ads are targeted and serviced online.
Frequently Asked Questions (FAQ’s)
- What does this deal mean for Etsy?
- The Etsy and Gizmodo media group deal will allow Etsy to expand its range of products and services, as well as gain access to millions of new potential customers and readers. The deal will also give Etsy access to proprietary technology such as Gizmodo’s subscription management platform and its advertising data and analytics platform.
- What does this deal mean for Gizmodo Media Group?
- The deal is a great step forward for Gizmodo Media Group. Gizmodo will continue to operate as an independent business unit, and will benefit from the technology and resources of Etsy. The deal will also help Gizmodo to diversify its revenue streams, as Etsy will be able to leverage Gizmodo’s proprietary technology to better target ads and analyze user and market data.
- What does this deal mean for the wider market?
- The Etsy and Gizmodo deal will have significant ramifications for the larger market. This merger will created a formidable competitor to Amazon, eBay, and other major players in the e-commerce and media markets. It will also create a substantial new player in the advertising market, as Etsy will be better able to target and analyze ads.
Related Examples in Detail
- Etsy’s Acquisition of Reverb: In December of 2019, Etsy announced the acquisition of Reverb, an online marketplace for musical instruments. By adding Reverb to its platform, Etsy was able to expand its range of services and reach a new subset of customers and sellers. Reverb also added additional technology, such as the “Reverb Price Guide”, which helps musical instrument buyers find the best possible prices on vintage gear.
- Etsy’s Acquisition of Blackbird Technologies : In April of 2020, Etsy announced the acquisition of Blackbird Technologies, a provider of artificial intelligence and machine learning solutions. By adding Blackbird Technologies to its platform, Etsy was able to improve customer experience and better serve customers with personalized product recommendations and more efficient search results.
Conclusion
The Etsy and Gizmodo Media Group deal is yet another bold move by Etsy to expand its range of services and reach new audiences. This acquisition will give Etsy access to proprietary technology, as well as millions of new potential customers and readers. For Gizmodo, the acquisition will help to diversify its revenue stream and better serve its customer. Finally, the deal will create a formidable competitor in the e-commerce and media markets, as well as an important player in the advertising market.
