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NEW YORK (AFX) - New York Times Co. said Monday it bought Baseline Studio Systems for $35 million in cash from Hollywood Media Corp., in a move to diversify its online revenue.
Baseline, an online database and research service for the film and television industries, charges subscribers for access to more than 1.5 million records with various facts, analysis, statistics, news, contacts and trends on the entertainment industry.
The Santa Monica, Calif.-based company is expected to generate about $6 million in revenue in 2006, New York Times said.
The deal "supports our plan to build the authoritative online destination for the entertainment consumer and for the industry," New York Times President and Chief Executive Janet L. Robinson said in a statement.
"This is a smart, good move that fits very nicely with the Times' print business," said Edward Atorino, an analyst with The Benchmark Company. "Their entertainment franchise is one of the best in the publishing business. They're going to try to leverage that to expand their online revenue sources."
The announcement came the same day as Dow Jones & Co., publisher of The Wall Street Journal, said it was reviewing a possible sale of six community newspapers. The Journal reported Dow Jones would use the proceeds to expand its online media presence.
Newspaper publisher Journal Register Co. also said Monday it is exploring the possible sale of some of its New England properties to focus on its online operations.
Major newspaper publishing companies have struggled in recent years as advertising dollars -- their primary source of revenue -- have shifted from print to the Web. Two weeks ago, New York Times said July revenue fell 1.8 percent, as advertising sales slid 3.4 percent.
The company, which also publishes The Boston Globe and International Herald Tribune is trying to cut costs, saying last month it would trim the width of its namesake newspaper to lower newsprint costs and consolidate some production.
New York Times' acquisition last year of About.com, a news and information Web site, started to pay off in July, when the site reported a 34.4 percent leap in ad sales to $6.2 million. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
