DivestmentMay 8, 2026, 04:09 PM
Ziff Davis to Sell Connectivity Business for $1.2B Cash
AI Summary
Ziff Davis has entered into a definitive agreement to sell its Connectivity business to Accenture Inc. for $1.2 billion in cash, a strategic move to maximize shareholder value. The company reported a net loss from continuing operations of $0.775 million for the first quarter of 2026, a decrease from a net income of $9.812 million in the prior year period. However, net income from discontinued operations, primarily the Connectivity business, significantly increased to $23.036 million. The proceeds from the sale are intended for general corporate purposes and capital allocation activities.
Key Highlights
- Ziff Davis agreed to sell its Connectivity business to Accenture for $1.2 billion in cash.
- Net loss from continuing operations was $0.775 million for Q1 2026, compared to net income of $9.812 million for Q1 2025.
- Net income from discontinued operations was $23.036 million for Q1 2026, up from $14.427 million for Q1 2025.
- Total revenues from continuing operations decreased to $267.641 million in Q1 2026 from $272.816 million in Q1 2025.
- Basic net loss per common share from continuing operations was $0.02 in Q1 2026, down from $0.23 income in Q1 2025.
- Total assets held for sale were $435.223 million as of March 31, 2026.
- The company repurchased and retired 1,186,086 common shares in Q1 2026.
- Net cash provided by operating activities increased to $29.953 million in Q1 2026 from $20.613 million in Q1 2025.
Price Impact
More from ZD