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