Digital New York: Times Digital traffic driver Abuzz has become a bust; IPO flatlines, but investors get paid.

Crain's New York Business, April, 2001 by Vargas, Alexia

When the new york Times Co.'s digital unit acquired Web information-sharing service Abuzz two years ago for $30.1 million, mostly in stock, it looked like a good deal. The price wasn't outrageous by the inflated standards of the dot-com boom, and Abuzz's proprietary chat software would help drive traffic to the Times' on-line properties.

Also, it appeared to be a sure thing back then that New York Times Digital was headed for a big IPO. Then came the Internet implosion. With the Times' recent announcement that it was closing the Abuzz offices and laying off staff, that deal doesn't look quite so savvy anymore. ``Two years ago, a lot of the on-line chat software companies were hot,'' says Leslie Morris, a principal at mergers-and-acquisitions adviser...

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