Yahoo to Invest in Blogs, Analyst Says

SAN FRANCISCO (Reuters) - Internet media company Yahoo Inc. is likely to build and buy tools that help its users create, publish and search blogs, Susquehanna Financial Group Marianne Wolk said in a note on Friday.

Wolk also said she also expects the company to expand into social networking software, which lets users share and organize content.

Yahoo recently integrated RSS feeds into its MyYahoo home page. RSS, or really simple syndication, allows users to receive content from sources such as news organizations and Web blogs. It also is a way for Web publishers to syndicate their content.

"We believe Yahoo is likely to continue to invest in the blogosphere; we see Yahoo building and buying blog tools and RSS search capabilities to complement MyYahoo's readership/aggregation service," Wolk wrote in her note.

Wolk added that she expects a potential new advertising market to grow around blog content.

A Yahoo spokeswoman declined to comment.

Google Inc., Microsoft Corp. Web unit MSN, Time Warner Inc.'s AOL and Ask Jeeves Inc. each have invested in blogging tools. Ask Jeeves acquired search capabilities through its Bloglines acquisition in February.

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