RUMOR: New York Times Near Sale Of About.com To Answers.com
The New York Times is nearing a sale of About.com to Answers.com according to AllThingsD. The New York Times has been looking to sell off About.com for some time now. About.com is known for publishing high-volume and low-cost content. Answers.com is reportedly paying $270 million to acquire About.com according to AllThingsD sources. The letter-of-intent has already been signed.
Private equity companies Summit Partners and TA Associates are currently working on lining up the financing. The New York Times acquired About.com for $410 million in 2005. The Times took a $195 million goodwill write-down on About.com last month. About.com’s traffic relies largely on Google.
The deal has not been finalized and all talks could still be halted.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry