New York Times Company Selling About.Com For $270 Million
About.com is being sold by the New York Times Company and the buyer Answers.com will pay $270 million to take over the website and other About Group operations.
Peter Kafka at AllThingsD first reported the acquisition and Answers.com is believed to still be raising the needed funds for the purchase with the help of private equity firms Summit Partners and TA Associates.
About.com is a guide and reference site that pays part-time and full-time writers to complete guides within their own specialties. Content found on About.com includes everything from landscaping and computers to magic tricks and pet care.
The Times is trying to ditch the service after it was largely responsible for revenue declines at the company last quarter which led to a net operating loss of $147.6 million after taking a $194.7 million non-cash writedown for the About Group.
About.com has recently been hit by falling display and cost-per-click advertising revenue which has softened its ability to turn a profit. As a whole the About Group saw online ad declines of 4% an print declines of 8% for the quarter.
The New York Times Company purchased About.com in 2005 at a cost of $410 million.
The New York Times Company and Answers.com officials are not currently commenting on the acquisition and a time frame for the buyout has not been revealed.