Primedia to Buy About.com in $690M Stock Deal

Share this article:
Primedia Inc., New York, yesterday announced plans to buy Internet content provider About.com in a stock swap valued at $690 million. The deal seeks to combine Primedia's offline consumer and trade magazine publishing business with About.com's online network of 700-plus topic sites.


As part of the deal, Primedia would swap 45.2 million of its shares for 18.1 million About.com shares, translating to approximately 2.34 Primedia shares for each About.com share. Primedia's most recent closing price, on Friday, was $15.25. At this rate, Primedia would pay $35.70 per About.com share, a 50 percent premium over Friday's close but a significantly lower purchase price than About.com's 52-week high of $105.81.


Primedia publishes major consumer titles such as Seventeen and New York magazines and niche trade titles such as Catalog Age and Circulation Management. About.com operates a network of more than 700 topic sites, organized into 36 areas and 50,000 subjects.


Scott Kurnit, About.com's founder/CEO, would retain those titles and report to Primedia chairman/CEO Tom Rogers. The deal is expected to close during the first quarter of 2001.
Share this article:
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Wine.com Uncorks New Digital Marketing Opportunities

Wine.com Uncorks New Digital Marketing Opportunities

The online wine retailer's strategy incorporates different flavors and depths.

93% of Companies Are Ineffective at Cross-Channel Marketing

93% of Companies Are Ineffective at Cross-Channel Marketing ...

Companies point to a lack of resources as the most common reason for lackluster marketing integration, a study says.

Metal Mulisha Races Towards Customization

Metal Mulisha Races Towards Customization

The motocross apparel company boosts mobile and Web conversions through product recommendations and personalized search.