InfoSpace, Inc. has announced that it has completed the sale of its mobile services business to Motricity (News - Alert), Inc. for $135 million in cash.

 
InfoSpace is planning to 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 potentially available for distribution to shareholders.
 
Jim Voelker, chairman and CEO at InfoSpace (News - Alert), claimed the closing of the transaction is an important strategic milestone for his company company. He added in a statement that InfoSpace is now a focused, online search company that is well-positioned for growth and success.
 
“InfoSpace’s unique metasearch technology, our strong cash flow and balance sheet, and our team of dedicated employees provide a strong foundation for our company. We look to the future with great confidence,” he said.
 
According to Voelker, this sale, in combination with the sale of InfoSpace’s directory business, completes the Company’s effort to unlock the value for its shareholders from these two businesses. Since May 2007, Voelker pointed out, InfoSpace has returned over $500 million in cash distributions to shareholders.
 
InfoSpace is a developer of metasearch products, which helps people to easily search and discover the web. InfoSpace uses its proprietary metasearch technology that combines the top results from the leading search engines to power a portfolio of branded Web sites, including Dogpile, www.dogpile.com, and WebFetch, www.webfetch.com.
 
Durham, N.C based Motricity is a provider of mobile content services and solutions that enable consumers to receive the content. Products and services range from mobile portals and storefronts to messaging aggregation with access to more than 200 million mobile subscribers.
 
“We're combining two of the best companies in the industry to create the premier provider of mobile platform infrastructure,” Ryan Wuerch, chairman and CEO at Motricity, had said in an October statement.
 
Anshu Shrivastava is a contributing editor for TMCnet. To see more of her articles, please visit her columnist page.
 

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