New York Times Buys About.com for $410 Million

Posted by Zonk on Friday February 18, 2005 @07:20AM 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.

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Re:How much did Primedia pay... by William_Lee · 2005-02-18 09:08 · 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&