Ziff-Davis Sells Off Market Research Unit for $106m

Computergram International, Sept 1, 1999

Ziff-Davis Inc, the US publishing subsidiary majority-owned by Japanese giant Softbank Corp, has agreed to sell its ZD Market Intelligence unit to direct marketing firm Harte-Hanks Inc for $106m. The purchase price includes $101m in cash at closing and a further $5m in assumed deferred revenue obligations.

The deal is expected to close in 45 days and does not constitute a major surprise, as Ziff had publicly disclosed in May that it was shopping the unit around and had received some interest. Softbank's recent strategy shift to encompass only pure internet businesses has left Ziff's own future in doubt and in July the company retained Morgan Stanley Dean Witter to help it explore its options. Softbank gave its blessing to that move and this sale, carried out with Morgan Stanley's assistance, appears to be one of the first steps in preparing Ziff for either outright sale or independence. The ZD Market Intelligence unit compiles and distributes data on purchases of technology products and services. It is expected to book $50m in revenue this year.