At OJR (Online Journalism Review) About.com CEO explains why NYT spending of $410 million makes sense & money for the NYT.
Interviewed by Mark Glaser About.com CEO Peter Horan delivers some inside what About.com stands for today and why the premium NYT paid was justified.
His main arguments in short:
1. NYT was buying over a Million pieces of content on 57.000 subjects
... How much would you have to pay to ..., How much time would it take to
2. NYT is buying thousands of "trained" and (now) "skilled" writers
... How much time and effort would you need to get, train and pay them?
3. NYT bought our fabulous collaborative guide system
... A guide system and publishing tools they have developed over the last 8 years
4. NYT bought into our most-intelligent ad-serving systems
5. NYT bought an audience of around 22 Million visitor a month
6. No one, including the NYT, wouldn't have the time to build a About.com model from the scratch - before the world moves on!
7. Because people working at and with About.com understand their business and doing a great job
Sounds a bit different of what Martin Nisenholtz said in his interview ... that the About.com deal couldn't change much on the way the NYT makes business, but it is helpful to increase inventory for NYT online ads hungry ad clients.
I suggest you read the full interview ...
If you found some ideas that would benefit to your business, lets me know (for less)!