Platinum's Axxel Knutson reiterates "strong buy" for Softbank.
Spinoff of ZD Net tracking stock with $5 in cash to shareholders (?). From Bloomberg:
Ziff-Davis Plans to Spin Off ZDNet Online Business (Update1)
By Kim Chipman
Ziff-Davis Plans to Spin Off ZDNet Online Business (Update1)
(Adds company comment in the fourth paragraph.)
New York, Jan. 28 (Bloomberg) -- Ziff-Davis Inc., which
recently agreed to sell its publishing, education and television
assets, said it plans to spin off its ZDNet online unit into an
independent company in an attempt to boost the business's value.
The company also said it's in talks to sell its events unit,
operator of the Comdex technology trades shows. It hopes to
complete that transaction by the second quarter and wrap what
remains of itself into the new Internet company.
Ziff-Davis, 69 percent-owned by Tokyo-based Softbank Corp.,
will use the proceeds from the unit sales to pay off about $1.2
billion in debt and give cash to shareholders. ZDNet shares are up
more than 50 percent in the past year -- 10 times the rate of Ziff-
Davis stock. Analysts have said ZDNet would get higher valuations
as an independent company.
``What people want to see in their marketplace is that you're
an Internet pure play,' said Daniel Rosensweig, president and
chief executive at ZDNet. ``We are trading at a discount to
comparable companies, and analysts suggest this move will
eliminate the discount.'
ZDNet operates a Web site for people who want to buy, use and
learn about technology. Ziff-Davis created the tracking stock for
the unit about 10 months ago.
Ziff-Davis has already sold its Market Intelligence business
for $106 million and its equity interest in ZDTV for $205 million.
It has entered agreements to sell ZD Publishing for $780 million
and ZD Education for $172 million. It didn't disclose what
companies were interested in buying the events unit.
The company began selling assets after Softbank said it was
looking to reduce its majority positions in non-Internet
companies. It expects to pay shareholders a dividend of about $5
with the proceeds from the sales.
Shares of ZDNet fell 7/8 to 29 3/16 in midday trading, while
Ziff-Davis shares rose 1/16 to 18 7/8. |
