Rumor Mill: Community Connect for Sale?

February 19, 2008

The New York based Community Connect, parent company of Black Planet, the 5th highest trafficked social-networking site according to Hitwise, may be for sale. Sources close to the deal report that Radio One and Viacom are both possible suitors. With over 16.5 million registered members and close to 80 million page views on Black Planet alone, we’re expecting a high price tag.

This story may be confirmation of an exploding trend in the Urban/African-American web space. With the launch of sites like The Root, IAC’s launch of Black Web Enterprises, BET’s Advertising Network, and others, are companies finally seeing the value in African-American niche market?

Category: web 2.0

Blaq

I would argue that companies already know how valuable the black market is. Let's take one segment of the African-American---women. Black women are the fastest growing segment among blacks in fact the buying power of Black women exceeds that of Latinas and Asian women combined, at $450 billion, and expected to grow to $600 billion in 2008. So, it makes good business cents (sense) to go after a profitable business' that target markets like African-Americans. The real question is who will benefit.

markus

I agree that they understand that African-Americans have and spends money, but I don't believe that corporations, until recently, saw the web as a viable medium to attract African-American dollars.

Blaq

You may have something there. But I understand why they are since computer ownership among Blacks may be lower than most because lack of disposable income. However, a recent study (I can't source at the moment) found or projected 80 percent of Blacks will have access to internet in their homes in the next 3 years. That's about 31 million. I don't believe there is a product in the market or online that has been able to capture the true value, yet. But I agree with you corporations are sometimes late to the party when it comes to the online ethnic market. This presents a heck of an opportunity for a company that can give this community a reson to log on.

urbantech

Its a great acquisition for Radio One, but a very sad day for minority owned and focused internet start ups. If a company like Communty Connect can only get a $38 Million dollar valuation, and a site like Meebo can get a $850 million dollars valuation and acquisition, and it has less then half the traffic of CC's one property, Blackplanet.com, its a very sad day indeed.

A quick query on Compete can show you what I mean:

http://siteanalytics.compete.com/blackplanet.co...

Toby "URBANTECH" Morning