Answers Corp. to Acquire Dictionary.com

Jul 20, 2007


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Answers Corporation, creator of Answers.com, has announced an agreement to acquire Lexico Publishing Group LLC, owner of the web properties Dictionary.com, Thesaurus.com, and Reference.com, for $100 million in cash. The transaction is subject to financing and customary closing conditions and scheduled to be completed by fall of this year. Key arrangements of the acquisition include: Lexico's web properties currently generate approximately three times the total page views of Answers.com; Lexico's web properties currently monetize at approximately one-third the rate of Answers.com, presenting material revenue upside; Over 85% of Lexico's traffic is direct from end users or people searching specifically for the term "dictionary" in search engines, the shift in traffic mix is intended to reduce Answers.com's reliance on search engine algorithms; Based on the June 2007 comScore data, the addition of Lexico's web properties, will increase Answers reach to over 22.5 million monthly unique users.

(www.answers.com)