New York Times Co close to selling About.com to Answers.com
09 Aug 2012
The New York Times Company is planning to sell its online resource guide About.com to question-and-answer site Answers.com.
Citing a person familiar with the deal, technology news web site AllThingsD yesterday reported that the Times Co is looking to sell the struggling web site, which produces high-volume, low-cost content, and has signed a letter of intent with Answers.com for a $270 million deal.
The Times Co confirmed the news report and said that it is in discussions to sell About.com but added, ''No definitive agreement has been reached'' and ''negotiations are ongoing.''
About.com, which uploads stories and how-to videos from freelancers on a wide range of topics, was acquired by the Times Co in 2005 for $410 million.
But the site has failed to attract much traffic and advertising, and posted an operating loss of $186.8 million.
The New York Times took a $195 million write-down on About.com at the end of last quarter and valued the business at $172.5 million.
The sale, if completed, would be the latest in a string of divestitures by the Times Co after it sold 16 regional newspapers last year to Halifax Media Holding and early this year its remaining stake in the Fenway Sports Group, owner of the Boston Red Sox.