Primedia Guns E-Motor, Acquires $72.5 Million Stake in Automotive.com
By Bill Mickey
announced on November 15th its purchase of a majority stake in new and used car search site Automotive.com
– attracted by its online lead generation capabilities. The company spent $72.5 million in cash for an 80 percent stake, with an agreement that the remaining 20 percent will be bought no later than early 2010 contingent on incremental earnings generated by the Web site.
for under $10 million in October. In both cases, Primedia has a direct match with print and digital content and, with its auto category, plans to integrate its 55 automotive sites – MotorTrend.com
among them – as part of Automotive.com.
, newly installed chairman, president and CEO Dean Nelson says, “Primedia’s performance in the third quarter was primarily impacted by revenue declines in the Enthusiast Media Segment’s automotive categories, as well as a reduction in U.S. Government advertising scheduled to air on Channel One.”