InfoSpace to Sell Online Directory Business for $225 Million in Cash

Sep 21, 2007

InfoSpace, Inc. announced that its board of directors has unanimously approved a definitive agreement under which InfoSpace will sell its online directory business, including the company's online yellow and white pages services, to Idearc Inc. for $225 million in cash. The transaction is expected to be completed by the end of 2007 upon the satisfaction of customary closing conditions and regulatory approvals. Upon completion of the transaction, the company expects to return the net proceeds from the sale to shareholders as a special cash distribution. The company will utilize a portion of its net-operating loss carry-forwards to offset substantially all of the taxable gain resulting from the sale, increasing the cash available for distribution to shareholders. At closing, InfoSpace's cash position is expected to be in excess of $400 million.