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August 5, 2008 3:06 PM PDT

Report: Comcast eats up DailyCandy

by Caroline McCarthy
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Women's e-newsletter start-up DailyCandy seems like a better fit for Conde Nast than Comcast, but Silicon Alley Insider is reporting that the cable company has acquired it for $125 million. The blog wrote that Viacom had been in the running, too; a Viacom spokesman told CNET News.com on Tuesday evening that while the media conglomerate had been interested, it had never made a bid for DailyCandy and had dropped out in early June.

DailyCandy's demographic of trendy urban women is a niche that advertisers love, but it's still a higher price tag than many observers expected.

The company had already been acquired once, by former AOL exec Bob Pittman's Pilot Group investment firm. That was for about $3 million five years ago; DailyCandy now employs about 60 people and has published two books. It's the second e-newsletter that the Pilot Group has flipped this year, having sold the much younger "eco" publication Ideal Bite to Disney for around $15 million; the firm still owns a majority stake in slacker-dude list Thrillist.

Comcast has recently acquired Movies.com and contacts management company Plaxo.

This post was updated at 6:16 p.m. PT with comment from Viacom and 7:39 p.m. to clarify wording on the company's interest in DailyCandy.

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.
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CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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