CollegeHumor.com Sells Out - for at least $20 Million
IAC has acquired a 51% stake in CollegeHumor's parent company, Connected Ventures, LLC, and full voting control of the company. The Post guesstimated the deal to hover around $20 million, but we've been told that the price tag was quite a bit higher. Never underestimate the financial viability of photographing pyramids constructed from beer cans.
The acquisition of the comedy site, which IAC said in a press release draws more than 6 million unique visitors a month, comes as established media giants have scrambled to buy Web-based properties popular with younger audiences, a trend typified by News Corporation’s $649 million purchase of the operator of MySpace. Rumors have swirled about a possible sale of The Onion, the satiric newspaper with a substantial Web presence, to Viacom for some time, though The Onion has denied any such talks. Other sites mentioned as potential takeover targets include social networking sites Facebook and Tribe.net.
CollegeHumor.com’s founders, Josh Abramson and Ricky Van Veen, will join IAC and continue to run the site, IAC said. Allen & Company advised Connected Ventures in the transaction.
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