Answers.com to buy About.com from "NY Times"

Answers.com is a former Israeli company, which was sold for $127 million in 2011, but still maintains a large Jerusalem R&D center.

9 August 12 11:23, Nadav Neuman

"The New York Times" is set to sell information portal About.com to Answers.com for $270 million according to reports in the US. "The New York Times" has been losing money from About.com, despite its popularity in the US. The sale will be at a loss: the paper bought the portal for $410 million in 2005.

"While About is gaining momentum in its turnaround efforts, and we expect to build on that progress in the second half of the year, we have reduced our long-term display growth and profitability assumptions for the group,” "The New York Times" CFO James Follo has told investors. The paper made a $195 million write-down on About.com for the second quarter, when it lowered its guidance on the unit, following a drop in revenue.

Answers.com is a former Israeli company, which was sold to Summit Partners in February 2011 for $127 million. Headquartered in St. Louis, Answers.com still maintains a large R&D center in Jerusalem.

Published by Globes [online], Israel business news - www.globes-online.com - on August 9, 2012

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