The bad news, of course, is that United Online’s leftovers will not be nearly as attractive. After all, landline Internet is hardly a growth industry right now. Unlike Kraft or Conoco, what’s left over at United isn’t very encouraging for investors.
But as for FTD, this move could liberate it from bureaucracy and help it grow. And if NetZero and Classmates.com crash and burn … well, FTD shareholders will be protected from the carnage.
I would caution against investing immediately in United Online in anticipation of the spin-off, because as I said, a stake in those other media and communications businesses doesn’t seem wise. If you get in before the company splits up, you’ll be stuck with some of both.
If you like FTD, wait until it’s standing alone. The earnings and revenue performance in past reports, when broken out separately from United Online’s other operations, are indeed encouraging. But I like to wait and get a few legitimate quarterly reports before I pass judgement on any newly minted stock.