IAC Offers $300 Million For About.com
Just when I thought that Answers.com was going to acquire About.com, IAC has come out from left field and made an offer that is over $300 million. This number is higher than the $270 million offer that The New York Times made for the website.
Answers.com is owned by private equity companies Summit Partners and TA Associates. According to AllThingsD, Answers.com had signed a letter of intent to buy About.com for $270 million.
Answers.com President Peter Horan was previously the head of About.com. About.com has over 900 “topic sites,” which features articles across a range of topics like parenting, cooking, and how-to guides.
About.com used to be doing very well in terms of traffic, but it plummeted after Google made changes to their search algorithm.
As a result, The New York Times wrote down the value by around $195 million. The New York Times acquired About.com for $410 million in 2005. IAC has plans to combine About.com with Ask.com.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry