Scripp Networks Looking For a Buyer For uSwitch; Shopzilla Next?
This story was written by Rafat Ali.
Scripps Networks Interactive (NYSE: SNI), the TV and online company, is finally putting its UK utility comparison site uSwitch on the block, after repeated rumors about it for the last year or so. It has hired Allen & Co to help in the sale process. With the market being difficult enough, it is in some urgency to offload it, so much so that it took the unusual step of issuing a press release about it. SNI, which was spun off the main E W Scripps company last year, bought uSwitch in 2006 for about $344 million.
This comes after a $244 million writeoff for its comparison shopping engine Shopzilla earlier this year. IN Q407, Scripps had already recorded a non-cash charge of $411 million, for "impairment of goodwill and other intangible assets" for uSwitch. A history of uSwitch, here on Wikipedia.
Maybe they should to sell it to the same PE firm that bought Kelkoo off Yahoo (NSDQ: YHOO) earlier this year. Whoever the buyer is, the price is likely to be a lot less that what Scripps paid for it, that's for sure.
And even though the company insists this new development will have no bearing on Shopzilla, meaning it isn't for sale officially, expect some change in that during the second half of the year.
By Rafat Ali
