Changing the world, one word at a time…

Newspapers Face Tough Transitions

The New York Times (NYSE: NYT) recently announced that they will be selling About.com to Answers.com for $210 million.  The About.com unit took a nearly $200 million write-down in the second quarter while revenue declined 8.7%.  The site has had difficulty coping with changes to Google’s algorithms.  The change affected online traffic, leading to a decline in display and click advertising.  Since the New York Times purchased About.com in 2005, the site has produced profits that helped bolster the company’s financial picture.  At the same time the company’s newspaper business struggled to make the transition to digital.
Read More…..