said Tuesday it will sell 14 Web sites and 18 email newsletters to
as part of its effort to shift its focus into information technology recruiting and career services. The transaction is expected to be completed by the end of business today.
Terms of the deal were not disclosed, but 46 EarthWeb sales, editorial and information technology employees will be offered employment with Internet.com. EarthWeb said it will record a charge of between $42 million and $47 million in the fourth quarter in costs related to the transaction. About $5 million to $6 million of the charge is expected to be paid in cash over the next 12 months.
EarthWeb said it expects to report a loss of 24 cents to 25 cents a share for the quarter. Eight analysts polled by
First Call/Thomson Financial
are calling for the company to post a loss of 23 cents a share. The company lost a $1 a share in the year-ago period.
Internet.com said it expects to incur costs associated with integrating the business at first, but anticipates the acquisition will be breakeven on a cash earnings basis. It also forecasts that by the fourth quarter of 2001 the acquisition will contribute to earnings.
Shares of EarthWeb rose $1.06, or 15.7%, to $7.81 in recent
trading. Internet.com was down slightly, falling 6 cents, or 0.9%, to $6.81.