Blog Post

JDate Parent Spark Networks Looking For A Wealthy Mate: Report

Spark Networks, the AMEX-traded parent company of Jewish dating site, is shopping itself to potential suitors, reports NYT. Interested buyers are said to include Yahoo (NSDQ: YHOO), eHarmony, IACI (NSDQ: IACI) and News Corp.’s (NYSE: NWS) MySpace. None of those names are particularly surprising, though it would be interesting if News Corp. tried to play up the social networking potential of the company. Spark Networks sports a market cap of $131 million, a number that has grown steadily in recent weeks, perhaps on anticipation of such a move. While JDate is the company’s most prominent brand, NYT notes that other niche sites in its stable, including AmericanSingles and BlackSingles both have more users. No price tag on the deal is named in the report.

Since coming public, on Valentine’s Day 2006, Spark Networks shares have struggled, and had been trading at an all-time low before its recent bounce. In its most recent quarter, the company posted a year-over-year decline in both revenue and earnings, which it attributed to weakness at AmericanSingles. Total sales decreased 10 percent, from $17.5 to $15.8 million and income fell from $2.8 million to $2.0 million. More company overview here on Reuters.