The Wall Street Journal reported that Discover Communications is selling the popular website, HowStuffWorks.com. They will be taking a loss on the sale as they are only realizing 18% of their 2007 purchase price.
From the article:
For Discovery Communications Inc., DISCA -0.49% the website HowStuffWorks.com proved to be one investment in digital media that didn’t work.
Discovery said Monday it would sell the site, which offers explanations on topics such as “How magnets work” and “How do they make hollow chocolate Easter rabbits?” for $45 million, or less than a fifth what Discovery paid to acquire the web publisher in 2007.
The site is being acquired by the Internet services company Blucora Inc., BCOR +0.31% which plans to integrate HowStuffWorks into its search advertising business InfoSpace, Blucora said in a news release. Blucora disclosed the purchase price in a securities filing, Variety.com reported earlier.
Discovery, owner of cable networks including the Discovery Channel and Animal Planet, acquired the site for $250 million in 2007, as part of an effort to expose more of its television content to the web.
Much has changed since then, as Google Inc.’s YouTube emerged as major destination for instructional videos of all kinds, not to mention television content. HowStuffWorks drew 7.1 million unique visitors in the U.S. on desktop devices last month, a 15% decline from three years ago, according to data from comScore. Earlier data weren’t available.
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