Confirmed: IAC Acquires About.com For $300 Million
It is confirmed that InterActiveCorp has acquired About.com for $300 million from The New York Times. The acquisition includes About.com, ConsumerSearch.com, and CalorieCount.com. The deal will be closed in the next few weeks. The acquisition will be down almost entirely in cash. IAC beat Answers.com in a bidding war as they had offered around $270 million in debt and equity. The New York Times had acquired About.com for $410 million in 2005 so they are selling it off at a major loss. After Google changed their search algorithm, About.com’s traffic had plummeted. Check out the press release below:
The New York Times Company Agrees to Sell Its About Group to IAC
NEW YORK–(BUSINESS WIRE)–Aug. 26, 2012– The New York Times Company (NYSE: NYT) has entered into an agreement to sell its About Group, which includes the Web sites of About.com, ConsumerSearch.com and CalorieCount.com, to IAC (NASDAQ: IACI) for $300 million in cash. The all cash transaction is expected to close in the next several weeks. The Company intends to use the proceeds for general corporate purposes.
“About.com has been a strong contributor to our company since its acquisition in 2005,” said Arthur Sulzberger, Jr., chairman, The New York Times Company. “About’s early expertise in search engine optimization, expert content and revenues from cost-per-click and display advertising made it a valuable component of our portfolio for the past seven years. This sale will allow the Times Company to focus on the development and growth of our core brands locally, nationally and on a global scale.”
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include risks detailed from time to time in The New York Times Company’s publicly filed documents, including the Company’s Annual Report on Form 10-K for the year ended December 25, 2011. The New York Times Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
About The New York Times Company
The New York Times Company (NYSE: NYT), a leading global, multimedia news and information company with 2011 revenues of $2.3 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, NYTimes.com, BostonGlobe.com, Boston.com, About.com and related properties. The Company’s core purpose is to enhance society by creating, collecting and distributing high-quality news and information.