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Primedia to Acquire About.com for $690 Million

Strategic Insights

— 1 min read

Primedia, a magazine conglomerate controlled by Kohlberg Kravis Roberts, is set to acquire About.com, one of New York City's largest Internet companies, for $690 million in stock. The deal marks a significant acquisition in the rapidly growing online media market. About.com, formed in 1996 as the Mining Company, is a web guide created by independent, mostly part-time guides who earn a share of the site's advertising. The company has grown to comprise more than 700 sites on topics ranging from astrology to woodworking.

Key Takeaways:

  • Primedia is acquiring About.com for $690 million in stock, expanding its online presence and coverage of specialized interests.
  • About.com, formed in 1996 as the Mining Company, has grown to comprise over 700 sites on various topics, with a large number of independent guides contributing content.
  • The acquisition highlights the growing importance of online media and the need for companies to expand their digital presence.
  • Primedia, with a portfolio of consumer fan magazines including New York and Seventeen, is diversifying its operations into the online space.
  • The strong US economy is driving a surge in online spending, with consumer spending increasing by 0.8 percent in September, according to the Commerce Department.

Statistics:

  • Primedia is acquiring About.com for $690 million in stock.
  • About.com has grown to comprise over 700 sites, with a wide range of topics covered.
  • Consumer spending surged 0.8 percent in September, according to the Commerce Department.
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Sources:

  • "Primedia to Buy About.com for $690 Million in Stock" [Page C14]
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