It is becoming more likely that E.W. Scripps, (NYSE: SSP) will sell Shopzilla. More and more rumors tend to support this, although this is not the case according to CEO Ken Lowe… But if you read between the lines:
“Shopzilla is a top online comparison shopping service in the US… [but] I wish I could say it’s been all smooth sailing.” Competition has been fierce, slowing growth and crimping margins. Outwardly, the company is still optimistic about the business.”
Scripps paid $525 million for Shopzilla in June 2005, and if they can get anything close to that, their bankers will have earned their fees. The acquisition has been a bust: Shopzilla makes up half of Scripps’ interactive group, which has managed to see revenues and profits decrease in a booming online market. Not very promising!
According to sources within Microsoft, MSN wants to buy Shopzilla. Microsoft just acquired Jellyfish, so they could plan to merge Jellyfish with the large(r) user base of Shopzilla. This could help Microsoft to compete with Yahoo Shopping and Google Products. Well, let’s see what happens!
Filed under: Comparison shopping, E-business, Funding & acquisitions | Tagged: Google Products, Microsoft, MSN, Scripps, Shopzilla, Yahoo Shopping | Leave a Comment »
