IVillage Will Buy Rival Women.com

Online women’s network IVillage Inc. reported a narrower quarterly loss and said it will acquire rival Women.com Networks Inc. New York-based IVillage said its fourth-quarter loss from continuing operations narrowed to $9.8 million, or 33 cents a share, from $26 million, or 91 cents, a year ago, as revenue rose 12% to $18.7 million.

The company warned, however, that first-quarter revenue would be about 25% less than the fourth quarter because of a slowdown in advertising. IVillage is buying Women.com for $25 million in stock and some cash, but the combined company is getting a helping hand from Women.com’s largest shareholder, Hearst Corp.

The media conglomerate is giving IVillage a $20-million cash infusion and is promising to buy at least $15 million in production and advertising services over the next three years. Hearst, which owns 46% of Women.com, will wind up with about 30% of the combined company. Women.com uses material from several of Hearst’s magazines, including Cosmopolitan, Good Housekeeping and Redbook.

IVillage’s shares rose 3 cents to close at $1.72 on Nasdaq before the news was announced. Shares in Women.com closed up 3 cents at 72 cents on Nasdaq.