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New York Times Buys About.com for $410 Million

Posted by Zonk on from the expensive-searching dept.

IAmTheDave writes "Reuters has the story that the New York Times Co. is set to purchase About.com for $410M from Primedia, Inc. The high purchase price is due to increased ad revenue, up 30% from last year." From the article: "Phillips pointed out that Internet companies have started trading again at significantly higher multiples, and said The Times Co. would be able to use ad revenue from About.com to make up for the flagging classified ad sales that have plagued the industry." Commentary also available at The Chicago Tribune, The Guardian, and CNN Money.

2 of 146 comments (clear)

  1. Re:All the news that's fit to purchase. by Lord_Dweomer · · Score: 2, Informative
    What people need to realize about print ads is that a media planners job is to make sure placement is relevant. So while there are OBVIOUSLY some clear cut cases of advertorials, you shouldn't get so upset about relevant ads placed next to stories unless it seems the story was blatantly written for the sole purpose of increasing the value of the ad.

    Think of it like Google's sponsored links.

    However, as someone in advertising/marketing, I'd also like to point out that many times we will try to work with a writer to get some free PR. This may be done by presenting them with an expert on the topic they are writing about, or suggesting an interesting article for them to write, which of course would have you mentioned in it.

    I'm not saying there isn't scummy stuff out there, but it really is a fine grey line between what is relevant placement, and what is scummy.

    --
    Buy Steampunk Clothing Online!
  2. Re:How much did Primedia pay... by William_Lee · · Score: 3, Informative

    If you're going to try to correct someone, how about posting a link and doing it courteously instead of coming off like a smug prick.

    According to cbsmarketwatch.com:

    "The purchase price of About represents a multiple of more than 10 times its revenue, and more than 30 times its cash flow, in 2004. It's also slightly more than the $401 million that Primedia itself paid when it acquired the company back in March 2001. "

    http://www.marketwatch.com/news/story.asp?guid=% 7B CD97F4BD%2DCDE3%2D458B%2DA601%2D3131D8929FE6%7D&si teid=yhoo&