Scripps (NYSE: SSP), which is in the process of splitting up its business into two units, has filed its annual 10-K report with SEC, and the Interactive division, which would be part of the supposedly fast growing Scripps Networks Interactive, is still seeing its share of troubles after a turbulent year. Its acquisition of comparison shopping plays with Shopzilla and uSwitch (in UK) is what has been primarily responsible for this turbulence.
First, its note on the two small acquisitions it did last year: “In July 2007, we reached agreements to acquire the Web sites Recipezaar.com and Pickle.com for total cash consideration of approximately $30 million.” And this optimistic note on overall online ad revenues: “Our Internet sites had advertising revenues of $40 million in 2007 compared with $34.0 million in 2006 and $22.0 million in 2005.”
Then, on to the troubles and its effort to turn them around:
— A non-cash charge of $411 million, including $312 million of nondeductible goodwill, was recorded to reduce the carrying value of our uSwitch business