New York Times in talks to shed About.com

(CBS/AP) The New York Times is moving to cut its losses on About.com.

Citing an executive familiar with the situation, the media company reported Wednesday that it has signed a letter of intent to sell the online resource guide to Answers.com for $270 million. The deal was first reported by blog AllThingsD.

In a statement, the Times confirmed that it is in talks to sell About Group, the division that houses About.com, but did not disclose the potential buyer. Funding has yet to be lined up for the deal, which is not yet final, the company said. 

New York Times reports higher revenue, stock jumps
Demand Media posts first profit since IPO
What earnings reports have revealed about ads

The Times purchased About.com in 2005 for roughly $410 million. Although the unit initially showed strong earnings after the acquisition, a change in the way Google (GOOG) handles search results reduced About.com's traffic, and the falling cost of online advertising hurt its revenue growth.

In July, the Times took a $195 million charge on About.com for the second quarter, which pushed the company to a loss for the period.