Niche magazine publisher Primedia has announced a $690 million all-stock merger with About.com, which runs sites offering expert advice on over 700 subjects.
In a news conference yesterday, Primedia ceo Tom Rogers claimed the deal would create “the single largest player in niche media”. He forecast incremental increases of $45-$50 million as a result of cost savings and revenue synergies.
A large chunk of these savings will, according to Rogers, come from the application of Primedia’s advertising in its niche consumer titles, among them Muscle Mustang, across the About.com network.
About’s founder and chair Scott Kurnit will fill the post of chief internet officer at Primedia, while continuing to oversee About.com.
Following the announcement, Primedia's stock slid $4.50 to a 52-week low of $10.75
News source: Advertising Age - Interactive Daily