New York Times preparing to sell About.com

Washington, Aug 9 (ANI): The New York Times is reportedly moving to cut its losses on online informational source, About.com.

According to CBS News, in a statement, the Times confirmed that it is in talks to sell About Group, the division that houses About.com, but did not disclose the potential buyer, adding that tunding has yet to be lined up for the deal, which is not final as of now.

The media company has reportedly signed a 'letter of intent' to sell the online resource guide to Answers.com for 270 million dollars, which it purchased in 2005 for roughly 410 million dollars.

Although the unit initially showed strong earnings, after the acquisition, a change in the way Google (GOOG) handles search results reduced About.com's traffic, and the falling cost of online advertising hurt its revenue growth, the report said.

In July, the Times took a 195 million dollar charge on About.com for the second quarter, which pushed the company to a loss for the period, it added. (ANI)