Media Corporation is selling its gaming portal gambling.com in order to concentrate on its online gambling and online advertising businesses.
Domain marketing specialist Sedo has been appointed to handle the process of the sale. Media Corp has already been approached by interested buyers and believes an auction process will generate the best price for gambling.com.
The sale will further boost the cash pile, which was £2.2m at the end of September 2010. This cash can be put to good use in acquiring businesses that can be added to the existing Purple Lounge online gaming business.
At 2.375p a share, Media Corp is valued at £8.04m. The gambling.com domain could be worth a significant chunk of that market value.
Growth Equities & Company Research forecasts a profit of £2.5m in 2010-11, although it is unclear how much of that profit might be generated by gambling.com. That puts the shares on less than four times prospective 2010-11 earnings.
Express Newspapers recently renewed its advertising agreement with Media Corpís subsidiary Eyeconomy.
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