InfoSpace’s stock skyrockets on online directory sale

Shares of InfoSpace Inc. soared for the first time in months after the company said it will sell its online directory business to Idearc Inc. for $225 million in cash.
The buffeted company said the tax-efficient deal will help it capitalize on net operating losses and maximize proceeds from the sale. InfoSpace said it will return the net proceeds from the transaction to shareholders as a special cash dividend.
The deal, which is expected to close by the end of the year, will help boost InfoSpace’s cash reserves beyond $400 million, the company said. And the move may precede another big sell-off: Motricity Inc. is rumored to be raising as much as $175 million to acquire at least part of InfoSpace’s mobile business.
Shares of InfoSpace shot up $3.50, or more than 26%, to $16.75 following the Idearc announcement.