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InfoSpace Shares Slide on Downgrade

Shares of InfoSpace slid about 10 percent on Nasdaq trading today, due to concerns about future business from Cingular, the company’s largest customer…
Mike Latimore, an analyst with Raymond James, said while InfoSpace could capitalize on increased business from Cingular’s acquisition of AT&T Wireless, the wireless content provider may face trouble if Cingular chooses to partner with more companies for data services such as ringtones and mobile applications.
“Based on our industry contacts, we believe that Cingular is doing a detailed review of its content strategy and is seriously considering doing more direct relationships with record labels, as well as using additional content aggregators,” Latimore wrote in a research note.
MarketWatch: Merriman Curhan Ford cut the stock to “neutral” from “buy” and said talks with InfoSpace competitors suggest that Cingular is preparing to launch to a new platform that would open it up to multiple content suppliers in early 2005.