Here's Why The New York Times Really Bought The Wirecutter
The New York Times has announced it is buying The Wirecutter, a five-year-old online consumer guide/product-recommendation service for a reported $30 million.
The Wirecutter, founded by former editor at Gizmodo Brian Lam, provides recommendations for technology products "obsessively researched and simply presented," according to Recode.
The New York Times rarely makes acquisitions, which makes this purchase especially noteworthy. The company knows it needs to keep up with the current and ever-evolving digital age, and therefore may be altering its strategy.
The Wirecutter is monetized thru affiliate links of the products it reviews through several e-commerce platforms including Amazon.com, Inc.(NASDAQ: AMZN).
It appears that simply generating revenue through digital advertising is not enough; the New York times saw digital ad dollars drop 7 percent last quarter, citing "declines in traditional web display" ads, Recode added.
It's apparent that advertising alone is not enough; sales need to be driven by a company's content to really monetize in 2016.
Full ratings data available on Benzinga Pro.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: Brian Lam Gizmodo New York Times NYTM&A News Media General Best of Benzinga
