IDT board suggests possible spinoff of subsidiary

IDT board suggests management consider spinoff of Zedge subsidiary

Associated Press

NEWARK, N.J. (AP) -- IDT Corp.'s board has called on the telecommunications company to consider the strategic alternatives for its Zedge subsidiary, including a spinoff or IPO.

The Newark, N.J.., company owns about 83 percent of Zedge, which offers free games, ringtones and wallpapers for cellphone users.

IDT said Wednesday that it plans to hire financial advisers to assist it in analyzing and executing on the best path for the business.

"Zedge is one of the untapped gems in our portfolio and is on track to become the de-facto standard for mobile content acquisition," Howard Jonas, IDT's chairman and CEO, said in a statement. "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."

Zedge CEO and co-founder Tom Arnoy said that its management team wants to get the company to the next level.

Zedge is headquartered in New York City and Trondheim, Norway.

Shares of IDT were unchanged in after-hours trading following the announcement.

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