Demand Media has acquired liveblogging tool CoverItLive, according to a report by TechCrunch this morning. The company has not disclosed the terms of the deal, but our sources place the purchase price at just under $5 Million.
This acquisition comes two months after Demand Media went public for $112.5 million. Demand Media was founded in 2006 by former MySpace chairman Richard Rosenblatt, and is parent company to how-to website eHow.com and domain name registrar eNom.
Since its release in late 2007, CoveritLive has been used by thousands of writers to engage millions of readers around the world. It is actively used both by bloggers as well as those in mainstream media. By providing easy to use, web based software, CoveritLive has quickly gained use around the world by publishers looking to improve their coverage of breaking news, interact with readers and create engaging events for audiences both large and niche.
From niche events like chess tournaments in Germany or local elections in London, to marquee events like the NFL Draft and American Idol, CoveritLive powers live events with social engagement for thousands of digital destinations around the world.
The acquisition comes two years after Demand Media made a strategic investment in Toronto's CoverItLive. Well-known investor and entrepreneur Paul Kedrosky is also an investor in CoverItLive.
CoverItLive's CEO Keith McSpurren was included on Techvibes Digital Media People to Watch List for Ontario in 2010.