, the Microsoft/NBC joint venture, has acquired social news site Newsvine for an undisclosed sum, the first acquisition in the firms's 11 year history., which had around 29m users in August this year, is believed to have acquired Newsvine to expand its user generated content / community features.

Newsvine has around a million users a month, and trails behind other social news rivals Digg, Reddit and Netscape, which has now been relaunched as Propeller. Newsvine should benefit from an enlarged audience, as well as being able to handle spikes in traffic more easily than before.

Part of the appeal of social news websites, as with blogging in general, has been the independence from traditional news and media outlets. AOL cited the perception of Netscape as a traditional media brand  when it decided to ditch the Netscape name and relaunch its social news site as Propeller.

It remains to be seen whether perceptions of the site will change now that it is owned by a large media company, though Newsvine will continue to run as an independent site.

Newsvine was launched two years ago, receiving $1.5m from Second Avenue Partners, a Seattle based VC firm.

Related stories:
Social media's influence overstated?
Are social news sites like Digg 'better' than Google News? 

Graham Charlton

Published 8 October, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

2565 more posts from this author

You might be interested in

Comments (0)

Save or Cancel

Enjoying this article?

Get more just like this, delivered to your inbox.

Keep up to date with the latest analysis, inspiration and learning from the Econsultancy blog with our free Digital Pulse newsletter. You will receive a hand-picked digest of the latest and greatest articles, as well as snippets of new market data, best practice guides and trends research.