By: Staff Reports
Internet Start-up Continues To Diversify Holdings
Gannett Co. Inc. has acquired an equity stake in Space.com, the companies announced Thursday at the International Space Symposium in Washington, D.C.
As part of the deal, Space.com, Lou Dobb’s online enterprise that recently axed 22 employees to seek increased profitability, has acquired Gannett’s space news properties, including Space News newspaper, spacenews.com and Florida Today’s Space Online Web sites.
Gannett will provide a cash investment and marketing and promotional support in its properties such as USA Today in exchange for an interest in Space.com.
Space.com’s acquisition of Gannett’s properties fits in with Dobbs’ strategy to build a multimedia company, which earlier this year bought one magazine and launched its own.
One Space.com employee expressed a sense of relief over an affiliation with Gannett, an established media company. However, Gannett’s cash investment doesn’t remove the need for Space.com to seek further funding.
The agreement also brings a major competitor into Space.com’s ranks, the employee said. Covering Cape Canaveral and major rocket launch information, Space Online was considered a competitor to Space.com.
In September, Space.com launched Space Illustrated, a bi-monthly magazine with an initial circulation of 150,000. Space.com also acquired Space Business International, a British trade publication on international space.
Copyright 2000, Editor & Publisher.