Aug 8 (Reuters) - Shares of the New York Times Co climbed 8.7 percent in early trade on Wednesday on a report that the company is close to selling its Internet property About.com.
The owners of Answers.com -- a question and answer site backed by Summit Partners and TA Associates -- are preparing to buy About.com for $270 million, according to All Things D, which cited sources familiar with the matter. (http://tinyurl.com/chfdw4k)
The New York Times declined to comment. Calls placed to Summit Partners and TA Associates were not immediately returned.
About.com has been a trouble spot for the New York Times. The company took a $194.7 million write-down for the About Group in the second quarter -- almost half of what it paid when it bought About in 2005 for $410 million.
Advertising revenue at the About Group dropped 8 percent in the second quarter due to decreases in both cost-per-click and display advertising. About's challenges stem in part from changes Google Inc made to its search engine in a bid to return results of high quality.
About.com is a website that provides expert answers that are geared to appear high in search queries. In turn, the company sells advertising against those results.
The New York Times has been shedding properties of late. The company sold its remaining shares in Fenway Sports Group, owners of the Boston Red Sox baseball team and Liverpool soccer club. It also jettisoned a string of regional newspapers located in California and the U.S. Southeast.
Shares of the New York Times, which publishes its namesake newspaper and the Boston Globe, were up 70 cents at $8.78 on the New York Stock Exchange.
(Reporting By Jennifer Saba; Editing by Gerald E. McCormick)
Jill Abramson, executive editor
Arthur Ochs Sulzberger Jr., publisher
Mark Thompson, CEO
Dean Baquet, managing editor
David Leonhardt, Washington bureau chief
Bill Keller, columnist and former executive editor
Andrew Rosenthal, editorial page editor
Paul Krugman, columnist
Thomas Friedman, columnist
Maureen Dowd, columnist
James Risen, Pulitzer Prize-winning reporter
David Brooks, columnist
Gail Collins (center), columnist
Frank Bruni, columnist
Nicholas Kristof, columnist
Charles Blow, columnist
Joe Nocera, columnist
Bill Cunningham, fashion photographer
Cathy Horyn, fashion critic
Mark Bittman, food columnist
Leah Finnegan, news assistant, Op-Ed/Sunday Review