WebMediaBrands Inc. Signs Agreement to Sell Internet.com Assets for $18 Million in Cash


NEW YORK--(BUSINESS WIRE)--WebMediaBrands Inc. (Nasdaq: WEBM - News) announced today that it has entered into a definitive asset purchase agreement to sell its Internet.com division to QuinStreet, Inc. for an aggregate purchase price of $18 million in cash.

The Board of Directors of WebMediaBrands unanimously approved the transaction and resolved to recommend that WebMediaBrands??? stockholders approve the transaction. Completion of the transaction is subject to approval by WebMediaBrands??? stockholders and other customary closing conditions. In addition, Alan M. Meckler, WebMediaBrands??? Chairman and Chief Executive Officer, and certain other stockholders, who, with Mr. Meckler, collectively hold approximately 39.5% of WebMediaBrands??? outstanding stock, have entered into definitive support agreements with QuinStreet, Inc. to vote a total of 37% of WebMediaBrands??? outstanding stock in favor of the transaction. The transaction is not subject to a financing condition. WebMediaBrands expects the transaction to be free of taxes.

Following the completion of the sale of Internet.com, WebMediaBrands will continue to operate its online business, which consists of Mediabistro.com, Graphics.com and related job boards, online education offerings and tradeshows.

We believe that this transaction will be beneficial to WebMediaBrands and its stockholders as it will significantly improve our balance sheet and at the same time allow us to focus on growing BtoB communities in the non-tech space, stated Mr. Meckler.

Wyrick Robbins Yates & Ponton LLP is serving as legal advisor to WebMediaBrands.