Question: What is the amount tiny Answers.com ($7 million in 2006 revenues), the operator of a reference aggregation site, has agreed to pay for equally tiny Lexico, owner of Dictionary.com, Thesaurus.com, and Reference.com. In order to raise the $100 million purchase price Answers has filed for a $140 million offering.
Lexico has three times the pages views of Answers and only one-third third the revenue per page, making it a bargain, the company believes. Staci Kramer at paidcontent.org says, "It makes sense." In after-hours trading yesterday, Answers stock was down 14%, but that may have been because the company simultaneously warned of a shortfall in second-quarter revenues. (Read more Answers.com stories.)