InfoSpace to return $300 million to shareholders in special cash distribution

By Lisa Kerner

Charlotte, N.C., Nov. 15 - The board of directors of InfoSpace, Inc. approved a special cash distribution of $9 per share, or some $300 million, following the recent sale of its online directory business to Idearc Inc. for $225 million in cash.

The dividend will be paid on or about Jan. 8. The record date for the payment is Dec. 10.

"This has been a very positive year for our shareholders as we've declared or paid over $500 million in dividends since May, and have announced an agreement to unlock additional value through the sale of our mobile business," chairman and chief executive officer Jim Voelker said in a company news release.

"In addition, by utilizing our net-operating loss carry-forwards, we have maximized the proceeds available for distribution; and we have retained our most valuable asset, the search business which represents the majority of our revenue and segment income in a dynamic growing market," Voelker added.

As previously reported, InfoSpace agreed on Oct. 15 to sell its mobile services business to privately held Motricity for $135 million in cash. Following the close of the transaction, which is expected to occur within 90 days of the announcement, InfoSpace expects to return "a significant portion of the net proceeds" from the sale to shareholders as a special cash distribution.

Bellevue, Wash.-based InfoSpace develops technologies used to locate content on the internet.

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