As the nation's paper publications scramble to find new profit centers in the rapidly-changing advertising market, they could do worse than look to Ziff Davis Holdings (OTC:ZFDH) as an example.Ziff Davis built its company on print magazines covering the electronic revolution, including its flagship PC Magazine. During the heydays of the late 1990's, when magazines routinely broke 300 pages thanks to the advertising glut, such magazines were goldmines.
After the dot.com bust, though, and with the transition of many advertisers to the internet, such halcyon days are gone. Rather than attempt to play out its string, Ziff Davis has decided to embrace the new media.
A major step in this transition was the selling off to Insight Venture Partners of its Enterprise Group, including the magazines Baseline, CIO and eWeek. What remains is a business much more focused on electronic media, positioning itself as the go-to source for technology information.
The remaining Ziff Davis Holdings Co. is a leaner, more focused company that has managed to increase its EBITDA even though its revenues have dropped. It still has work to do, staunching the bleeding from its gaming-oriented magazines and the decline in print advertising in PC Magazine. However, it seems to be on the right track, and could be worth a look-see for those who like tech stocks.
Closing Bell: The Bears Get a Win (APPA, NLST, AET, PALM, IDT)
Can Crocs Continue Its Quest for New Highs?
Twitter May Chirp Its Commercial Accounts Next Month
