Many years ago, I stopped my subscription to the Los Angeles Times. The main reason was that I could find much of my news for free on other sites.

Like many other traditional media companies, the L.A. Times didn't make a smooth transition to the Web. Even though it's located in the heart of Hollywood, it's been TMZ.com that has built a strong entertainment franchise.

Well, the L.A. Times hasn't given up. In fact, the company has made a strategic investment in Mixx, which is a social news site that's similar to Digg.com. The amount was not disclosed (other than it was a "small" stake).

All in all, it looks like a good move. Mixx has a stellar team with backgrounds at places like Yahoo! Inc. (NASDAQ: YHOO), AOL and USA Today.

Basically, I think it could be a good way to get some insight into the fast-moving social media world. And sometimes it's better to be late to the game. After all, don't the pioneers often have arrows in their back?

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

L.A. Times plays catch-up online originally appeared on BloggingStocks on Wed, 05 Dec 2007 15:24:00 EST. Please see our terms for use of feeds.