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Singel described the other companies as "traffic arbitrage" businesses.
We see lip service being given to "engagement" or "content discovery," but these companies' focus on traffic arbitrage.
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They also engage in electricity arbitrage.
These companies have generated a tremendous amount of the value for shareholders by creating mass market tools, arbitraging web traffic and making affiliate revenue.
In contrast, a "badtech" company relies on arbitrage and, in effect, rents traffic rather than owning it.
All in all, considering that Demand Media doesn't have a big top-10 stand alone property, I can understand why it takes the search arbitrage approach, but AOL's efforts undermine the reality that despite its sliding traffic from ISP users, it has a large audience base and if it produced compelling content, then it would be able to retain and grow that base.
Dividend arbitrage is complex.
We called it "arbitrage".
See also arbitrage, Michael R. Milken.
CALL it academic arbitrage.
Others arbitrage price differences.
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