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Scripps to Buy Online Shopping Site Shopzilla

Jun 7, 2005  •  Post A Comment

In a bid to capture the growing number of dollars directed toward the online comparative shopping sector, E.W. Scripps on Monday said it is buying Shopzilla for $525 million in cash.

While at first blush the acquisition is not one that enhances Scripps’ cable, television station or newspaper properties, analysts noted Tuesday that the transaction will enhance the company’s prospects for long-term growth by giving Scripps entry to an area in its infancy.

Scripps officials estimate that Shopzilla in 2005 could generate as much as $35 million in segment profit on revenue of up to $140 million.

Shopzilla bills itself as an online comparison shopping site that culls data on more than 30 million products from 55,000 retailers globally and allows users to more effectively compare prices.

The sale comes a week after online-auction titan eBay agreed to pay $620 million for Shopping.com, a Shopzilla rival.