Posts for Ticker ‘INSP’

InfoSpace Sells Online Directory, But Is Still A Dog

InfoSpace (INSP) is selling its online directory business to  Idearc Inc (IAR) for $225 million. INSP shares are up 28% on the news to $17, but still well below their 52-week high of almost $28.

In the second quarter, INSP revenue dropped sharply to $70 million from $95 million. And, the company posted an operating loss of $33 million.

While the online business which is being sold had segment income of $16 million on revenue of $40 million, the mobile business, which INSP is keeping had a segment loss of $ 4 million on revenue of $31 million.

In other words, the better business is being sold.

Douglas A. McIntyre

Posted on: September 17, 2007 – 8:51 am in Mergers and Buy Outs, ,

InfoSpace Finally Sells, At Least Partly (INSP, IAR, GOOG)

InfoSpace (NASDAQ:INSP) has been one of the perpetual old "internet value stocks" that circulated as a takeover stock because of the relative market cap to asset value, but the value was somewhat skewed because the company is no longer profitable and isn’t expected to be for the near future.  Google (NASDAQ:GOOG) never made the company completely irrelevant, but the search functions that were available for free on Google bit into much of InfoSpace’s core operations that it led the pack in before 2002 or 2003 and that it was able to charge large premiums for.

This morning, InfoSpace (INSP) announced it is selling its Switchboard.com and other online directory assets to Idearc, Inc. (NYSE:IAR).  Idearc is paying $225 million from cash and short-term borrowings.  Shares of InfoSpace are up about 24% pre-market at $16.50, still in the lower-end of the $12.56 to $27.76 range over the last year.

unfortunately, InfoSpace hasn’t been profitable and analysts have been looking for losses in both 2007 and 2008.  It is also expected to see declining revenues.  As of June 30, the company had $197.79 million in cash and short term investments and total liabilities of $72.29 million; net tangible assets were listed as $350.89 million.  Its market cap before this was listed as $439.5 million, so an an interpolated basis it would have a new market cap of $550 million.

This is part of the Board of Directors’ ongoing review of our company and the opportunities available to enhance value for shareholders.  Upon completion of the transaction, InfoSpace expects to return the net proceeds from the sale to shareholders as a special cash distribution.  At closing, InfoSpace’s cash position is expected to be in excess of $400 million.

Jon C. Ogg
September 17, 2007

Posted on: September 17, 2007 – 8:29 am in Dividend, Internet, Mergers and Buy Outs, , , , , , ,

The 52-Week Low Club

Health Management Associates (HMA) Big borrowing for special dividend. Drops to $6.36 from 52-week high of $21.59.

Opentv (OPTV) CEO leaves. Down to $1.23 from 52-week high of $3.15.

Infospace (INSP) Has not recoved from tough quarter. Still slipping. Down to $13.72 from 52-week high of $27.76.

Ikanos (IKAN) Falling for several days after cutting outlook. Down to $5.83 from 52-week high of $13.70.

Douglas A. McIntyre

Posted on: September 4, 2007 – 3:41 pm in HI/LOW, , , ,

Media Digest 8/9/2007 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, BNP Pariba suspending three funds due to sub-prime problems in their portfolios.

Reuters writes the net income and sales rose at News Corp (NWS).

Reuters reports that Wal-Mar (WMT) will use Facebook to improve its back to school sales.

The Wall Street Journal writes that Google (GOOG) will allow people cited in stories that it picks up to post comments.

The WSJ writes that Toll’s (TOL) home-building revenue fell 21%.

The WSJ writes that Blockbuster (BBI) has purchased movie download service Movielink.

The WSJ reports that Toyota (TM) will delay launching its new battery-powered hybrids due to safety concersn.

The WSJ reports that by year-end  firms based in China will represent the single largest number of overseas firms listed on the Nasdaq

The WSJ says GM (GM) and Toyota (TM) have cut their forecasts for industry sales this year.

The WSJ writes thta results from cable and telecom companies show that internet growth may be slowing.

The WSJ writes that Dell’s (DELL) former CEO will receive $48.5 million for his stock options.

The New York Times writes that a private equity firm has invested in the new NBC-News Corp (NWS) online venture

The FT  writes that US car dealers need to improve their image if the industry is to get more leverage in Washington.

Barron’s writes that shares in Infospace (INSP) fell on poor results.

Douglas A. McIntyre

Posted on: August 9, 2007 – 3:21 am in Uncategorized, , , , , , , , ,