Sources inform ''Globes'' that German media magnate Axel Springer has made an offer for classified ads site Yad2, indirectly owned by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) through Walla Communications Ltd.. Bezeq confirmed receipt of offers for Yad2 in a notice to the TASE today, but said, "No decision has been taken to sell the company."
Walla completed the full acquisition of Coral-Tell Internet Services Ltd., which owns Yad2, four months ago. It reportedly paid NIS 75 million to exercise its contractual right to acquire 25% of Coral-Tell, giving Yad2 a value of NIS 300 million. Walla originally acquired control of Yad2 for NIS 117 million, giving it a value of NIS 156 million, in July 2010.
Bezeq said, "Walla received a number of offers to buy Coral-Tell from unaffiliated third parties, subject to the meeting of certain conditions." It added that it was reviewing the offering together with Wall and Yad2, but cautioned, "At this stage, there is no assurance that the offers will materialize in a deal."
Yad2 has been profitable for a long time, while Walla has not been able to generate substantial profits. The sale of Yad2 would leave Walla without any substantial sources of income or profits.
Published by Globes [online], Israel business news - www.globes-online.com - on April 23, 2014
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