Rakuten planning to expand its reach in the US.
Japanese multinational Rakuten is reportedly planning to buy PopSugar, an online media network of websites with special focuses on celebrity news, for approximately $580m.
Tech Crunch cited sources familiar with the matter as saying that PopSugar was looking for a buyer, and Rakuten might have looked like a lucrative choice of the company.
Rakuten is not well known in the US, but the company is popular in Japan as it owns Viki, a Hulu-like international TV show site, and also has several businesses under its belt including banking, e-commerce, smartphones.
According to reports, Rakuten is willing to spend for digital content companies as it previously bought OverDrive for $410m and has received several inbound acquisition requests.
The company has also been investing in US-based startups in an attempt to expand its reach in the country.
PopSugar’s target audiences are women, and it also has a fashion brand site ShopStyle that generated $1.2 bn in sales last year for its retail partners.
According to reports, this makes the celebrity-focused site ideal for Rakuten to push its products in the US market.