J2 Global buys Ziff Davis for $167 million in cash
Nov. 12, 2012 -- Ziff Davis Inc. has been sold to j2 Global Inc., a provider of business cloud services, for approximately $167 million. The purchase price was funded out of j2's cash on hand, according to the company.
“We have years of experience and significant interest in the digital media and online marketing space, both as a large scale consumer of advertising (~$50M per year) and as a seller of advertising on our ad-supported properties and a provider of marketing and advertising services through Campaigner,” said Hemi Zucker, j2 Global's CEO, in a statement. “This acquisition brings scale to this effort with a top leadership team deeply committed to building the business through organic growth, which we expect to continue. This is our 40th acquisition and we plan to grow the business in the same way we have our others -- through a combination of internal growth and acquisitions.”
Current Ziff Davis brands include PCMag.com, ComputerShopper, ExtremeTech, Toolbox.com and Geek.com. Earlier this year, the company's b-to-b unit, Ziff Davis Enterprise, was sold to QuinStreet, a lead-gen marketing company.
According to the release, j2 anticipates that its revenues for 2012 will exceed its previous estimate of $345 to $365 million, due to the acquisition. The transaction is also expected to add approximately $60 million towards j2's 2013 revenues.
By Elizabeth A. Reid