Primedia Provides Optimistic Projections for About Acquisition

Primedia

(PRM)

expects its proposed acquisition of

About

(BOUT) - Get Report

to produce at least $350 million of consolidated earnings before interest, taxes, depreciation and amortization in the first 12 months following the merger, a 40% increase from the projected figure in 2000.

Primedia's stock was hammered

Oct. 30 after the company disclosed plans to acquire Internet company About in a deal originally valued at $690 million, falling 28.7% to $10.88. About's shares rose 56 cents to $24.44. Primedia has since rallied slightly, trading today at $11.94, but well off the 52-week high of $34.88.

Primedia, a media company with print, video and Internet businesses, expects to close the acquisition in the first quarter of 2001.

The company is on target to report about $250 million of consolidated EBITDA for 2000, which includes a loss before interest, taxes, depreciation and amortization of $90 million from new media operations.

Primedia expects the new media operations of the combined company to be profitable in 2002.