Report: InfoUSA May Spin Off Internet Division
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InfoUSA Inc., which compiles customized mailing lists, reportedly may spin off its Internet division, infoUSA.com, to boost its value.
Shares have dropped more than 40 percent since mid-April. The company, whose products power the Internet directories for Yahoo Inc., Microsoft and others, hired law firm Cooley Godward LLP to help it with the possible spinoff, Bloomberg News said.
InfoUSA.com gets revenue from content sales, advertising, licensing fees and electronic commerce, and the company said the unit is profitable. InfoUSA A shares closed Friday at 7 3/8. Shares have fallen substantially since hitting a 52-week high of about 12.
"We are committed to ... unlocking shareholder value, which we believe is not currently reflected in our stock price," InfoUSA Chairman and Chief Executive Officer Vinod Gupta said in a statement.