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Ziff-Davis to sell unit
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January 28, 2000: 10:15 a.m. ET
Technology publisher selling tradeshow unit in restructuring move
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NEW YORK (CNNfn) - Ziff-Davis Inc. announced Friday it is in solid talks to sell its tradeshow unit, ZD Events -- a move that is part of the media and marketing company's ongoing restructuring plan.
After the sale, Ziff-Davis will eliminate its two tracking stocks, Ziff-Davis and ZDNet, and become a stand-alone Internet company to be named ZDNet Inc., which will trade under the symbol ZDZ. The move marks Ziff-Davis' departure from being primarily a magazine publisher to being an Internet company.
"Technically this is not a spin off, as previously reported," Robert Borchert, director of investor relations at Ziff-Davis told CNNfn.com. "It's a merger between ZD and ZDNet (ZDZ: Research, Estimates) to create a new, stand-alone Internet company."
Borchert would not name the prospective buyer of ZD Events, which hosts several worldwide tradeshows for the technology sector, including COMDEX, the largest event aimed at the computer industry. The sale is expected to be completed by the second quarter.
Ziff-Davis, a media company specializing in information on computing and technology and marketing strategy, said it plans to use the proceeds from the deal to eliminate debt, but primarily to pay a second-quarter dividend to ZD (ZD: Research, Estimates) stockholders.
Softbank Corp. is the largest holder of ZD stock with a 70-percent stake and after the restructuring Softbank will remain the largest shareholder, with a roughly 45-percent stake of the company's fully diluted shares.
Company shareholders will vote on the restructuring at a stockholders meeting scheduled for Feb. 29.
In November, ZD sold its market intelligence unit for $106 million and its stake in ZDTV for $205 million to Paul Allen's Vulcan Ventures. The company also entered into agreements to sell its ZD Publishing unit for $780 million and its ZD Education unit for $172 million.
"We are pleased with the company's progress in unlocking value for our shareholders," said Eric Hippeau, chairman and CEO of Ziff-Davis. "We believe that the value of ZDNet will be enhanced by its independent status, and are looking toward completing this transactional process before mid-year."
In trading Thursday, shares of Ziff-Davis edged down 3/16 to 18-13/16 and ZDNet traded up 1/16 to 30-1/16. 
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Ziff-Davis
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