Wednesday, August 6, 2008

Comcast Buys DailyCandy

I wonder what this will mean! Here's a version of the article that appears in today's NY Times:

DailyCandy started in 2000 as an e-mail publisher for a relatively small group: young women in New York who were interested in the latest in shopping and culture, and had money to spend.

Eight years later, the company, driven by a small army of contributors providing breezy tips, has grown to encompass 13 daily and 8 weekly newsletters, reaching 2.5 million subscribers in 11 American cities and London.

That drew the interest of Comcast, the cable giant, which on Tuesday agreed to buy DailyCandy to add to its stable of Internet media properties. Comcast paid about $125 million, according to people briefed on the matter. The deal is expected to close within two months, and Comcast will retain DailyCandy’s staff.

The sale is a big payout for the Pilot Group, the private investment firm that bought a controlling stake in DailyCandy for less than $2 million in 2003, according to a person briefed on the matter. The firm, whose founder is Robert W. Pittman, the former chief operating officer of AOL, has made investments in several other Web companies, including Thrillist, a similar newsletter publisher aimed at young men.

Two years ago, DailyCandy explored several strategic options, including a potential sale, but did not reach a deal.

Comcast’s interactive media division has embarked on a buying spree recently, striking deals like last year’s purchase of Fandango, the online movie ticket seller. In DailyCandy, the company saw a content provider with an attractive advertiser base and an established local and national presence, according to Sam Schwartz, executive vice president for Comcast Interactive Media. The site will serve as a natural partner for Comcast properties like E! and the Style Channel, he said.

“What we saw was a really engaged audience, a very loyal audience, as well as very local properties and great relationships with advertisers,” he said.

Peter A. Sheinbaum, DailyCandy’s chief executive, said the company would focus on bulking up its newsletters and Web site, as well as adding mobile services. DailyCandy is also exploring the addition of widgets and other ways for customers to customize their subscriptions.

Several online media companies have been sold in the last year. Among them are Mediabistro.com, the media news and networking site sold to Jupitermedia for $23 million, and PaidContent, a new media news site sold to the Guardian Media Group for a reported $30 million.

2 comments:

Leslie Ann said...

Very interesting.

Cricket said...

WOW. I've been a subscriber for years. Just yesterday I downloaded the shortcut on my BBerry. I was impressed that they have one. I can't see the amazing illustrations though...
You never know what the future holds for YOUR blog!
Cheers!