Discovery Sells HowStuffWorks at 82% Loss After Seven YearsCrayton Harrison
Discovery Communications Inc. sold HowStuffWorks, a website that explains the science behind everything from magnets to Silly String, for $45 million, taking an 82 percent loss seven years after acquiring the asset.
Blucora Inc., owner of the InfoSpace search business, acquired HowStuffWorks in an all-cash deal, according to a filing today. Discovery, whose cable channels include TLC and Animal Planet, will keep providing advertising services to the website it acquired for $250 million in 2007.
Discovery sought to make HowStuffWorks more in-depth than the low-rent “content farms” that offer cursory information on a broad array of topics to attract search-engine users. The site ranks 327th for U.S. Web traffic, according to Alexa.com, and Discovery doesn’t disclose its financial results.
Shares of Discovery, based in Silver Spring, Maryland, slid less than 1 percent to $77.45 at the close in New York. Blucora, based in Bellevue, Washington, rose less than 1 percent to $19.25.