VeriSign unloads remaining stake in Jamba: Mobile content transaction valued at $200M

VeriSign Inc. finally left the mobile content space, unloading its stake in Jamba to News Corp. for $200 million.
A pioneer in the early days of ringtones and other mobile goodies, Jamba was picked up by VeriSign for $273 million in June 2004. But the Mountain View, Calif.-based outfit offloaded 51% of the business to Fox two years ago for $188 million as the market for ringtones began to plateau, and Monday’s move signals its exit from the once-lucrative field.
VeriSign’s move follows last year’s announcement that it would sell or close as many as 12 divisions as it streamlines its operations. Fox, meanwhile, continues to market mobile content from high-profile franchises such as “The Simpsons” and “Family Guy” through Jamba as well as through its own branded portal.
“This sale is an important step in our effort to focus on our core business in Internet infrastructure,” said Jim Bidzos, VeriSign’s interim CEO. “News Corp. has been a good business partner and we wish them well as they continue to operate an exciting mobile entertainment business.”
Shares of VeriSign climbed more than 4% to $25 following the news, while News Corp. stock lost 2% to $10.59.