NY Times CEO Janet Robinson, EVP Digital Ops Martin Nisenholz and
CFO Len Forman discuss their company's acquisition of About.com for
About.com will strengthen and diversify the Company's
on-line advertising base, adding a significant and highly profitable
cost-per-click advertising business, as well as impression-based
display advertising. More than half of its revenues come from
cost-per-click advertising... will also extend the Times Company’s
reach among Internet users. The Company will be the 12th largest entity
on the Internet with the addition of About.com's 22 million monthly
users to our already significant base of 13 million users. This scale
is important as we compete for market share in readership and
Last year ad revenues rose 38 percent at our new news media group websites.
According to PRIMEDIA, the purchase price of 410 million reflects
a multiple of about ten times About, Inc's 2004 revenues and a multiple
of over 30 times About Inc segment EBITDA. Based on The Times Company
projections, the transaction reflects a multiple of 23 times estimated
2005 About EBITDA…compares well to the multiples for other recently
completed Internet acquisitions,such as CBS MarketWatch. We anticipate
the acquisition will be accretive to earnings in 2007.
Google supplies the sponsored links that appear on About's content pages, and we expect this relationship to continue.
This is a business with 80 people.
(Quotes are from the CCBN StreetEvents transcript.)