IAC, the parent company of Match.com and Newsweek/The Daily Beast, announced this week that it has acquired subscription site Tutor.com. Terms of the deal were not disclosed.
Tutor.com is an online subscription and eLearning site that connects more than 3,000 educational professionals with students who need help in highschool and college-level coursework. The site is positioned as a B2C company selling directly to students and parents, but in fact, 90% of the company’s business comes from group subscription sales to universities and schools, the military (including the department of defense), and school districts.
The news is particularly encouraging to online-only subscription sites and eLearning sites since it indicates a willingness by big media corporations to acquire media companies that don’t fall into traditional definitions of paid content.
“Tutor.com has done the hard part, having built over many years an incredible nationwide network of high quality tutors ready to help students improve their learning,” said Greg Blatt, CEO of IAC said in a press release. “We think it’s ripe for us to accelerate usage by bringing to bear our consumer Internet expertise in areas like product, marketing and distribution. … Although it’s small, we’re excited about the acquisition.”
IAC generates approximately $2.63 billion in revenue yearly. Since Tutor.com was privately-held, there is no publicly-available financial data. The company did make Inc. magazine’s list of the 5,000 Fastest Growing Companies in 2007; companies on the list reported a median revenue of $9.4 million that year.
George Cigale, founder of Tutor.com, will remain CEO and continue to run the business from Tutor.com’s offices in New York City.