“We’re betting that Shopzilla will become the way that people shop online,” Scripps CEO Kenneth Lowe said in 2005, after buying the shopping comparison site for $525 million in cash.
That hasn’t happened, and now Scripps Interactive (SNI) is writing down almost half of its purchase. Specifically, the company took a $244 million goodwill impairment charge on Shopzilla in the fourth quarter, it announced today.
Today’s quote: “At our Interactive Services businesses, fourth quarter results reflect the weakening economy, particularly as it relates to the exposure Shopzilla has to the challenging retail spending environment and changing competitive forces within the online comparison shopping marketplace.” Lowe said. “Going forward, we expect operating results at our Interactive Services segment to remain under pressure as we execute our competitive repositioning of Shopzilla.”
Scripps Networks International reported $412 million in Q4 revenue, slightly below consensus. But adjusted EPS of $0.55 beat the Street by four cents.