The New York Times announced on Monday (Oct. 24) that it purchased an online product recommendation consumer guide called The Wirecutter for more than $30 million in an all-cash transaction.
The five-year-old site was founded by Brian Lam, tech journalist and former editor at Gizmodo and Wired.
“The New York Times is the perfect home for The Wirecutter because of our shared love and commitment to reader service and public good through rigorous reporting,” Lam said in a press release. “And most important, we’re thrilled to have the chance to help Times readers find great gear that can improve their lives.”
According to Forbes, Lam will continue to have an advisory role at The Wirecutter, which he created back in 2011 to provide consumers with buying advice and recommendations for a wide range of consumer products, including technology, gadgets, home appliances and gear.
“We’re very excited about this acquisition on two fronts. It’s an impressively run business with a very attractive revenue model, and its success is built on the foundation of great, rigorously reported service journalism,” Mark Thompson, president and CEO of The New York Times Company, stated.
The Wirecutter’s sister site, The Sweethome, was also included in the acquisition deal. Both sites generate revenue via direct links to merchants where money is earned for each consumer click and purchase via the eCommerce sites.
“The New York Times is the definitive source for news, information and entertainment, and now, we’re working on becoming an authoritative destination for service journalism. The practical approach that The Wirecutter and The Sweethome take to product recommendations embodies the same standards and values that are the pillars of our own newsroom,” Thompson added. “Their service-focused guides align with our commitment to creating products that are an indispensable part of our readers’ lives.”
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