Yahoo! Inc. has acquired Bix.com, a site that allows advertisers and users to create and judge online contests. Financial terms of the deal were not disclosed.

The acquisition of Bix is seen as a way for Yahoo to increase the company's social media offerings while competing with popular social and video-sharing sites MySpace.com and YouTube.com.

Bix members can create online contests and then submit their own entries. Users vote on which entry deserves to win prizes that range from cash or merchandise sponsored by advertisers.

"The Bix community is fueled by so many talented people from singers, dancers, and freestyle MCs to photographers, models, and comedians. In my discussions with many of you I have discovered a common desire -- to have an audience so that you can get feedback and develop a fan base. Whichever group you fall into, our goal has always been to serve you and we are confident that joining Yahoo will accelerate our ability to deliver on that promise," says Mike Speiser, chief executive of Bix.com.

Yahoo says it plans to position Bix as a stand-alone site but will also integrate it with some of its other social media properties such as Yahoo 360 and the photo-sharing site Flickr.com.

Earlier this week, it was reported that Yahoo is teaming up with sponsors such as Nissan and Travelocity for its social networking sites.