InfoSpace Sells Mobile Content Division

InfoSpace has announced that it is selling its mobile services business to Motricity, a privately held provider of mobile content services and solutions, for US$135 million in cash.

"This transaction is another opportunity to unlock value for our shareholders," said Jim Voelker, Chairman and CEO of InfoSpace. "Like the previously announced sale of our online directory business for $225 million in cash, this transaction is extremely tax efficient, allowing us to capitalize on our net operating losses to significantly maximize the cash proceeds from the sale."

Upon closing, Ryan Wuerch will remain as Chairman and CEO of Motricity and Steve Elfman, current executive vice president of InfoSpace's mobile services business unit, will become President, Chief Operating Officer of Motricity.

"With these transactions, InfoSpace will be solely focused on online search. We will maintain a strong financial position and a solid distribution network with over 100 private label partners as well as our award winning branded websites such as Dogpile.com. Based on results for the first half of the year, our search business represents over 60% of InfoSpace's revenue. Our search business is highly scalable and continues to generate strong cash flow," concluded Mr. Voelker.

The acquisition expands Motricity's customer base to include 11 of the top 13 carriers in North America including AT&T, Verizon Wireless, Sprint, T-Mobile, Bell Mobility, Tracfone and Alltel. Motricity's managed service infrastructure powers storefronts and communities for 9 of the top 13 carriers in North America and has generated over US$1 billion of gross content sales to date. Motricity will also power 5 of the top 6 carrier "start screens" with its mobile portal product which will support billions of page views this year alone.

In addition, it expands Motricity's international presence by adding offices in the U.K., Paris, and the Netherlands and leading customers throughout Europe including Virgin UK, KPN and Vodafone.

Posted to the site on 15th October 2007