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.
InfoUSA owns a proprietary database of 190 million consumers and 104 million
businesses. This unit provides business and consumer databases, as well as
Internet directory services.