Blog Post

Ziff Davis' Two Units Being Hawked by Lehman; Enterprise Division Status Unclear

Ziff Davis, the trouble tech media company, has begun hawking the two of its divisions to potential suitors, even as the status of its enterprise division remains unclear after media PE firm Quadrangle Group almost bought it last month, has learned. According to our sources, Lehman is actively soliciting interested buyers for the Consumer Small Business Group and Game Group, separately. The CSB group consists of PC Magazine, ExtremeTech and others….online/digital accounts for about 40 percent of its revenues. The Game group consists of Electronic Gaming Monthly and
This comes as reports of Quadrangle close to buying the Enterprise division came early last month, but at this point it seems that deal has been stalled. It is unclear whether the deal has fallen through, or if Ziff has decided to go solo on that. Comments on our original post last month might give you a hint.
It has been tough going for the tech publisher, with the print books sucking blood out of the company. Lehman is pushing the digital assets of the two divisions, according to our sources.
More after the holidays.
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4 Responses to “Ziff Davis' Two Units Being Hawked by Lehman; Enterprise Division Status Unclear”

  1. jimmyjam

    The looming outstanding debt on ZD is going to force something. Michael Miller is now at Ziff Brothers, marking what is perhaps the last true editorial departure from the company. They can hawk the digital growth, but the print properties continue faleter badly and they still pay for a bunch of the edit that goes online.

  2. Willan Johnson

    Rafat – my sense is we are going to see a lot more Private Equity activity in 2007. Your recent headlines regarding McClatchy, Opus Media and now Ziff Davis highlight the trend. While there is speculation re: AOL and Y! merger, I wouldn't be surprised if Private Equity firms got in the mix with one of those as well (though Y!'s price would probably have to fall some more).