VeriSign considers dumping mobile operations

VeriSign Inc. outlined plans to streamline its operations and sell or close as many as 12 divisions including some-or perhaps all-of its mobile operations.
The Mountain View, Calif.-based company said it will divest “a number of businesses in the company’s portfolio, such as communications, billing and commerce.” VeriSign said it plans to expand its core businesses such as its Internet domain registry, online security technology and identity protection services.
VeriSign said it has already begun negotiations to unload six to 12 businesses; the company said it has yet to determine the fate of its mobile messaging and broadband content-delivery operations.
The move marks a bit of an about-face for VeriSign, which has expanded aggressively with a series of transactions in recent years. But the company began to transition out of the mobile content space last year, selling 51% of its Jamba operation to Fox for $188 million, and VeriSign has lost several key executives due to fallout from stock-options investigations that snared dozens of tech companies earlier this year.
“Clearly, we’ve been an acquisitive company in the past. . I’m sure the perception on the Street has been that that was our strategy,” CFO Albert Clement said in a conference call with analysts. “But that’s definitely not the case on a go-forward basis.”
Shares of VeriSign dipped following the news but quickly recovered and were trading at $33.93-up more than 2% from Tuesday’s close-by midday.