Reference service Answers.com has seen its traffic drop about 28% in the last week after Google changed its search algorithm. The site is heavily dependent on Google for search-related traffic, and this would also mean serious impacts on its revenues and stock price.
In turn, this may mean some complications in its proposed $100 million buyout of Dictionary.com, which is based on its ability to raise that amount of money on the open market ($140 million, to be exact).
However Answers' CEO Bob Rosenschein assures the investors in an issued release: “This change only demonstrates the sound business rationale behind our agreement to purchase Dictionary.com, because it underscores a primary motivation for the deal: to secure a steady source of direct traffic and mitigate our current dependence on search engine algorithms."
Source: Forbes
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