February 17, 2005

New York Times Buys About.com for $410 million

The New York Times bought About.com from Primedia for $410 million in cash. About.com gets about 22 million unique visitors a month and has a network of 500 experts providing content and discussion. Originally Primedia bought About.com for $690 million in stock during the bubble.

By cross-selling their products, the New York Times believes the transaction will be accretive in 2007. The price is 10 times About.com's sales and 30 times 2004 EBITDA. Yes indeed, the internet bubble is coming back.