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Q: Should Rediff Acquire Portals For Increasing Inventory?

Three key moves that Rediff has made in the last year or so include – the launch of Rediffmail NG (mobile) services, the acquisition of TV advertising platform Vubites, and more recently, the launch of a deals service – Deal Ho Jaye. Both the email and deals business will add commission revenue for Rediff, even as Online Advertising remains the companys primary source of revenue. Someone suggested to me that Rediff should have sought to acquire smaller vertical portals, and add to its advertising inventory, much like AOL is doing in the USA. Rediff has over $33 million cash in bank.

My take on this is, that Rediff, not Netcore, should have acquired OneIndia, or a similar portal, because alongwith more inventory, Rediff would also have acquired a repository of Indian language content, keeping in line with its preparation for an increase in Internet usage in India. Rediff doesn’t have Indic content; Yahoo does, and is preparing for more.

So what do you think – should Rediff look to acquire portals for increasing inventory?

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