$1.2B Sale of Connectivity Division Sends Ziff Davis Shares Up 74%
ZD has more than doubled off its 52-week low of $22.45 on elevated volume (6.8× avg).
Summary
Ziff Davis has agreed to sell its connectivity division, which includes brands like Ookla and Speedtest, to Accenture for $1.2 billion in cash. This division generated 16% of Ziff Davis's total revenue last year. The news, which follows an earlier announcement today regarding Accenture's intent to acquire Ookla, is considered a transformative deal for Ziff Davis, leading to a significant 74% surge in its stock price. The company plans to use the proceeds for capital allocation and general corporate purposes, realizing substantial value for shareholders. Investors will now monitor the deal's expected closure in the coming months and how Ziff Davis deploys the capital, while Accenture integrates these new network intelligence capabilities.
At the time of this announcement, ZD was trading at $48.30 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $22.45 to $50.55. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.