IDT Corporation (NYSE: IDT) announced today that its Board of Directors had instructed management to determine and pursue strategic alternatives to unlock the value in its Zedge subsidiary, including a spinoff or IPO of the Company. IDT intends to retain financial advisors to assist it in analyzing and executing on the best path.
Zedge is the world’s premier discovery platform offering free, high quality games, ringtones and wallpapers. Zedge’s app, available on Google Play and iTunes, has been installed more than 70 million times and has ranked in the “Top 15” in Google Play for three years running. Zedge offers a fully non-incentivized, scalable, distribution platform to advertisers, artists and developers seeking high quality customers. IDT owns approximately 83% of Zedge.
“We remain committed to providing Zedgers with a great discovery service that offers a personalized catalogue of free and relevant, quality games and personalization content, and this dedication has resulted in exceptional growth catapulting us to the top of the charts,” said Tom Arnoy, Zedge’s CEO and Co-Founder. “With access to growth capital we will be able to continue expanding our customer base, accelerating user engagement and innovating new and exciting offerings. Our experienced management team is excited by the prospect of getting the company to the next level and I am happy to have Jonathan Reich, our COO, on board considering his previous success in realizing value from IDT’s incubations.”
“Zedge is one of the untapped gems in our portfolio and is on track to become the de-facto standard for mobile content acquisition,” said Howard Jonas, IDT’s Chairman and CEO. “Zedge has an incredibly talented team, market leading position and outstanding technology. The marketplace does not currently provide fair value for Zedge within the IDT family, and we will find the right way to realize this worth for our stockholders.”