By Nate Wolf
Shares of Ziff Davis skyrocketed Tuesday after the digital media and internet company agreed to sell its connectivity business to Accenture for $1.2 billion in cash.
Accenture, the IT consulting company, will take over Ziff Davis' internet-connectivity platform Ookla, which includes products like Speedtest and Downdetector. The move will help Accenture's clients track network performance and safely implement artificial-intelligence technology, the company said.
Ziff Davis stock soared 73% to $48.27 on Tuesday. Accenture stock was down 0.6%. The consulting stock has dropped 41% over the last 12 months as investors worry that AI-driven efficiencies will reduce the need for consultants.
The $1.2 billion deal is a windfall for Ziff Davis, which owns shopping and wellness sites, media brands like CNET and IGN, and various cybersecurity and marketing solutions. Ziff Davis had a market capitalization of $1.1 billion as of Monday, meaning it shed just one vertical for more than the equity value of its entire company.
The connectivity business accounted for around 16% of Ziff Davis' total revenue in 2025. The company will continue to own and operate the division until the transaction is completed "in the coming months," it said.
"This is a transformative deal for Ziff Davis, representing a significant realization of value for our shareholders and a concrete illustration of the quality of the businesses in our portfolio," said Ziff Davis CEO Vivek Shah.
Ziff Davis plans to utilize the sale proceeds for general corporate purposes and to fund its capital-allocation activities.
Write to Nate Wolf at nate.wolf@barrons.com
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March 03, 2026 10:24 ET (15:24 GMT)
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