TeliaSonera divests mobile portal Zed

Kim Ignatius

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TeliaSonera has finally found a buyer for its subsidiary Zed, which produces entertainment services for mobile phones. Spanish media company Wisdom Entertainment will acquire Zed for 30 million euros.
      Zed, which operates at a loss, is not a part of the core business areas of TeliaSonera, which has sought to divest Zed for years.
      "We are pleased that the long process is now over", commented TeliaSonera CFO Kim Ignatius.
      The deal requires the approval of competition authorities in Germany, where the buyer has operations similar to those of Zed.
     
Zed sells its mobile information and entertainment services in Finland, Germany, the UK, Italy, Malaysia, and the Philippines. Its net sales last year totalled around 80 million euros. The current staff number is 170, but their fate with the new owner is not yet known.
      According to TeliaSonera, Wisdom Entertainment will become the world's market leader in mobile entertainment after the acquisition of Zed. The Spanish company produces video games, animations, and other electronic entertainment. It has a subsidiary, LaNetro, which produces content similar to Zed's.
      In Finland, Zed has been a potent symbol of the technology boom and bust. The company was to become a worldwide market leader, and 300 million euros was spent on its marketing. Zed was once valued at no less than 18 billion euros.
      Zed's heavy losses later led to a dramatic reduction in its operations, and its parent company began to seek a buyer.


Previously in HS International Edition:
  Yahoo parts with Zed wireless data portal interests (15.1.2004)

Links:
  TeliaSonera

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