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New York Times Buys About.com for $410 Million
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.
NOw we'll need a free registration to read the junk on about.com??? No thanks!
The story is posted on Reuters, and does not require a free registration to read it.
Weaselmancer
rediculous.
Really, I would prefer to keep all of these things seperate, but it can be useful and there's certainly some appeal for the publisher to gain new audiences.
Before Buyout:
Seals: An arctic mammal predominantly inhabiting lands covered in show and ice
After Buyout:
Seals: An endangered arctic mammal, frequenly accosted by the ever accelerating expansion of evil humans. Seals inhabit the endangered arctic ecosystems that are becoming more and more rare due to President Bush's oil cronies and their power and influence over corporate America. It should be noted that, while seals have been killed be the millions in the past, Republicans often like to go on Seal clubbing expeditions just to see small, defenseless, helpless animals suffer.
The Toronto Star buys Aboot.com
Now, let me start with the disclaimer: there's nothing wrong with it. I'm a firm believer in good, old-fashioned capitalism and what any person or corporation wishes to risk his hard-earned capital on is entirely his decision. Al the best and I hope they make a bundle.
Having said that, is there still a line between news and marketing?
I remember, during the eighties, when a whole bunch of so-called "news magazine" programs, from Entertainment Tonight to First Edition and other similar shows came under fire because while pretending to be news programs, they were largely just marketing venues for the networks. However, the public adapted, and most people know how to distinguish between real news and slick-and-glossy "infotainment" (another word that came out of the eighties).
Nonetheless, going all the way back to Dateline NBC's exploding trucks (and I've spoken extensively to one of the producers about this issue, so let me also disclaim that no one who worked on that story still works for the show), I wonder if news and sales haven't become, well, the same process.
Sure, the bottom line is the bottom line. Newspapers exist to sell newspapers. That they report news is merely the product; the goal is to show a profit. If reporting news ceases to be a profitable product, newspapers will begin to... sell vacations on the Internet, perhaps?
My same favorite, Dateline NBC, ran a "two hour special" last year on Donald Trump. That special happened to coincide with his program The Apprentice. Were they reporting news, or hyping a television show? A producer told me, "Donald Trump is news. That he's affiliating himself with a television program is newsworthy. And interdepartamental hype is just part of the business."
So, what's the synergy? NYT runs a story on disaster recovery efforts in Asia. A sidebar on how some lovely small-town tourist attraction has already got back on its feet, and is open for visitors. Find out more at about.com, where several tourist agency links are ready to take your order. This, I suppose, is less tacky than the NYT simply running the agency ads alongside the article.
Where exactly is that line between news and marketing?
What he wants is more important that what I want. What he wants is also more important that what you want.