For many traditional media companies, consolidation is the way to go when it comes to developing or furthering an online presence. This strategy has proven easier and more lucrative than in-house development for companies like News Corp., Dow Jones & Co. and now, NBC Universal, which this week announced a $600 million acquisition of iVillage.com.

A good article about this trend was written by David Shabelman at TheDeal.com. Here are some highlights:

- NBC Universal Inc.'s $600 million acquisition of iVillage Inc. highlights the rapid-fire consolidation among Internet content providers, reflecting the growing shift of advertising dollars from print products to online properties.

- The most recent run on Internet content companies began in November 2004, when Dow Jones & Co. of New York agreed to acquire online financial news site MarketWatch Inc. for $528 million. In March 2005, The New York Times Co. spent $410 million to acquire consumer information firm About Inc. from Primedia Inc. Media giant News Corp. of New York joined the rush in late 2005, spending a total of $1.2 billion to acquire Intermix Media Inc., with its popular MySpace.com social networking site, and IGN Entertainment Inc., a provider of video game information that also runs movie information Web site RottenTomatoes.com and lifestyle site AskMen.com.

- Valuations in Internet content deals have ranged widely. The iVillage deal, pegged at 24 times the company's fiscal 2006 Ebitda, is at the high end of comparable transactions, according to New York investment bank Jefferies & Co. The purchase of IGN was valued at only 13 times 2006 Ebitda, while the Intermix acquisition was valued at 21 times Ebitda, reflecting greater growth prospects associated with MySpace.com.

- Driving the rush to acquire Internet content sites is an upsurge in online advertising.

- Despite the boom in online advertising, however, even stronger independent content providers such as iVillage are teaming with larger companies rather than brave the mounting competition from major media companies.