It appears Scripps–the 100+ year old media company–isn’t having the level of success with online media it had hoped.
Acquiring online comparison shopping site Shopzilla for $525 million in cash in 2005, Scripps indicated it expected great growth from the company. Unfortunately, it appears tougher competition and increased costs have thrown them of course and now Shopzilla is struggling, according to Portfolio.com.
Shopzilla’s revenue in the second quarter fell to $59 million this year from $65 million last year, and profits were down to $6.8 million compared with $16.5 million a year ago.
So, does this suggest dark days ahead for online comparison sites? Maybe not. Compare Scripps doom and gloom with ValueClick’s upbeat report.