VeriSign Exits Mobile Content; Sells Remaining Stake In JV To News Corp For $200 Million
VeriSign’s (NSDQ: VRSN) effort to capitalize on mobile content through its acquisition of Jamba is officially over. VeriSign tried to keep skin in the game through a JV with News Corp (NYSE: NWS). selling 51 percent in May 2007 for $187.5 million and a merger with Fox Mobile Entertainment. Today, the two companies said VeriSign has sold its remaining 49 percent to News Corp for approximately $200 million, suggesting that the value of the JV, which has struggled with leadership and strategic issues, has been static at best. VeriSign’s sale has been expected for months given the company’s switch to a core focus on internet infrastructure. VeriSign acquired German mobile content company Jamba in 2004 for $273 million. More details on this deal at sister site MocoNews.
Meanwhile, VeriSign is still in the process of divesting its non-core businesses, including aggregator Moreover. The recent settlement of the Associated Press lawsuit should help. “We’re still in the process of working a deal around that business, as with others,” VeriSign spokeswoman Lisa Mallloy said this morning.
Rafat adds: We have been expecting this for a while…with VeriSign wanting to get out and Jamba’s ownership structure, this was the only logical deal at this point. Doesn’t mean News Corp may not turn around and try and sell it at some point, especially since Jamba for all intents and purposes is a European company now, and can be disposed off to a local player there.
Disclosure: VeriSign has been a sponsor of our sister site, mocoNews.net.
Related StoriesPosted In: Mobile, Money, M&A & Venture Capital, Mergers & Acquisitions, Companies, News Corp., verisign
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Comments (0)
Oct 7, 2008 1:48 PM
Well I wouldn’t say the UK is their biggest Euro market as Germany is actually their biggest market.
I think Jamster/Jamba are still a very strong unit and have a deep talent pool of people.
From my perspective, I am interested to see where they take the business now that ringtones are on the decline.
The thing I find really strange is that Verisign can spend 1.5 billion on acquiring mobile content/media/application firms and then turn around after 2-3 years and say “opppsss, we are not really very good at this stuff”.
Nov 13, 2008 5:56 PM
There’s more mobile content divisions for VRSN to sell. Remaining assets include the Messaging and Mobile Media group (short-messaging, multimedia messaging, and mobile content application services). This division is in a tough spot as they take economic hits. The group is taking great strides to remain profitable while on the chopping block. Some methods employed include headcount reductions, mothballing less profitable products and ‘productizing’ (rather than customizing) solutions. As a mobile professional, I cling to the idea that the business picks up, but with this economic situation, ‘the niche’ will be to come up with ideas that preclude more expensive options that fail to target those affected by the downturn.
-=> ex-VRSN (RIF-ed 9/2008) Stephan