(20 October 2007 5:00 pm)

MUMBAI: US broadcaster Discovery has agreed to acquire the site HowStuffWorks.

The site is a source of explanations of how the world actually works. Discovery says that acquiring HowStuffWorks further strengthens its global position as the number-one non fiction media company dedicated to providing knowledge and satisfying curiosity across all platforms.

HowStuffWorks' 11 million global monthly unique visitors, which have grown 25 per cent over the past year, have access to an extensive and rapidly growing library of deep and broad content designed to deliver the most relevant information possible.

In addition to an editorial team that creates new content every day, HowStuffWorks leverages the exclusive digital rights to over 30,000 books, 8 lakh images and more than 1,80,000 maps as it explains the world from brains to bats, from rocket engines to roller coasters, from hybrid cars to HDTV, and countless other topics.

HowStuffWorks’ content is highly ranked by the world’s leading search engines and the addition of clips from Discovery’s video library will create an even more robust and rich platform for users to easily find high quality, multimedia content.

HowStuffWorks is regularly cited as a trustworthy source, earning widespread recognition including multiple Webby awards, Time magazine’s "25 Websites We Can’t Live Without" in 2006 and 2007, and PC Magazine’s "Top 100 Web Sites" four times including in 2007.

HowStuffWorks’ management team is led by CEO Jeff Arnold, who founded WebMD and The Convex Group.

Discovery president and CEO David Zaslav says, "The HowStuffWorks acquisition is a strategic bull’s-eye for Discovery. As the leader in knowledge and curiosity on television, we are proud to partner with the experienced management team of HowStuffWorks, the leader in knowledge and curiosity online.

"One of my early challenges at Discovery was determining how best to build a robust digital media portfolio. With HowStuffWorks, Discovery now has a solid platform for strengthening our digital businesses, leveraging our video assets to create new experiences for users, advertisers and our distribution partners, and taking those opportunities around the globe."

HowStuffWorks CEO Jeff Arnold says, "To continue meeting consumer expectations and aggregating large audiences, HowStuffWorks partnered with a global media company with a complementary brand and extensive media assets.

"Contextually integrating engaging clips drawn from Discovery’s vast video library of more than 100,000 hours of programming with the family-friendly and evergreen collection of expertly written articles on HowStuffWorks will ultimately deliver an accurate ‘video wikipedia.’ Information-seeking consumers will find a rich, multimedia experience to answer the world’s questions, and our business partners will find new opportunities to reach targeted audiences of engaged consumers."

Discovery president, digital media and business development Bruce Campbell says, "In the fragmented world of the internet, with more and more people accessing information through search engines, high-quality content will be increasingly important. The natural alignment between Discovery’s video clips that span so many genres and contextually relevant HowStuffWorks articles will expose our programming to a wider audience and drive more visitors to HowStuffWorks and our other online properties."

As part of its complementary on-air/online strategy, Discovery is actively expanding its programming franchises dedicated to popular science and popular technology, such as the TV series Mythbusters and How It's Made. The company is developing and producing additional programming in these genres that is easily edited to short video clips that can be utilized to enrich the content on HowStuffWorks and Discovery’s other online platforms.

The first of the new TV programmes, How Stuff Works, marks a big step in the convergence of television programming and internet content. Focusing on man-made systems, natural phenomena and technology, the show will reconnect viewers to the everyday world. The programme will explore topics such as how mummification works; how telescopes work; how the Bermuda Triangle works; and how solar panels work. The show will air daily on Discovery US from next year with worldwide rollout expected soon thereafter.

As part of the HowStuffWorks transaction, Discovery will acquire a portfolio of other digital properties that complement the Discovery brands, including expert ratings and reviews from ConsumerGuide.com, an extensive database of digitized maps owned by GeoNova Group (formerly MapQuest Publishing), and QuickCompliance, a medical education business that complements Discovery’s existing health businesses.

Through HowStuffWorks, Discovery also will hold a minority equity position in HSW International, a separate and publicly traded entity that has the local language rights to the HowStuffWorks content and brand in Brazil and China.

HowStuffWorks current shareholders will maintain a significant equity position in HSWI. Discovery Communications intends to enter into a licensing agreement providing certain content rights to HSW International in Brazil and China.

HowStuffWorks and these additional assets will become a subsidiary of Discovery. HowStuffWorks will continue to be based in Atlanta, Georgia. Discovery has no immediate plans to significantly change the 160-person team or its operations. The impact to Discovery Communications’ operating cash flow will be immaterial in year one. The deal is expected to close later in the fourth quarter of this year after requisite approvals have been received.

HowStuffWorks is the most recent in a series of online initiatives that build upon Discovery’s core strengths and brands, including Animal Planet Media’s acquisition of Petfinder.com and the recent purchase of TreeHugger.com, which will support Discovery’s new Planet Green television network.

The revised Discovery.com website, rich in video experiences, was recently named by AdWeek and MediaWeek to their Third Annual 'Digital Hot List: Best of the Web 2007'.