Unified messaging service provider
j2 Global Inc.
) announced that its subsidiary Ziff Davis Inc. has acquired IGN
Entertainment website from media giant
). The acquisition is expected to increase j2 Global's digital
media business by more than two fold.
J2 GLOBAL INC (JCOM): Free Stock Analysis
NEWS CORP INC-A (NWSA): Free Stock Analysis
OPEN TEXT CORP (OTEX): Free Stock Analysis
WEBSENSE INC (WBSN): Free Stock Analysis
To read this article on Zacks.com click here.
IGN Entertainment's asset includes IGN.com, UGO.com, 1UP.com and
AskMen.com and is a leader in video game, entertainment and men's
lifestyle content. Additionally, the company boasts more than 600
advertisers and 53 million unique global customers.
j2 Global possess a global network of publishing partners and
delivers local content in 10 languages across 40 different
countries. The combination of Ziff Davis' popular assets and its
strength in data analytics with IGN's powerful video content
business will make j2 Global one of the largest digital
publishers in the lifestyle and entertainment space.
Delaware-based j2 Global believes that the combined portfolio of
assets will create a very powerful content producing company and
thereby allowing its marketers to address a larger group of
audience. Although, the company hasn't declared the financial
terms of the deal, it is believed that News Corporation is
offloading its assets at a much lower price than $650 million it
spent to acquire IGN in 2005. j2 Global expects the acquisition
to contribute in its 2013 earnings.
In November last year, j2 Global acquired privately-held digital
media company, Ziff Davis Inc. for a total consideration of about
$167 million. We believe the acquisition is a strategic move by
the company to target the young tech-friendly customers, who are
using their smartphones more often to download video games and
order online lifestyle products.
Financial Results of Related Companies
), another operator in the industry, has declared weak financial
results for the fourth quarter of 2012, with adjusted earnings of
13 cents, way below the Zacks Consensus Estimate of 25 cents
Open text Corporation
) second quarter 2013 earnings of $1.53 per share breezed past
the Zacks Consensus Estimate of $1.34.
j2 Global currently carries a Zacks Rank #3 (Hold).