Nine Entertainment Co has finally come clean on plans to sell its group buying website Cudo.
The website has been slugged with a price tag of $60 million after being launched a year ago as an $800,000 joint investment between Nine Entertainment Co and Microsoft.
AdNews reported last week that Nine Network owner CVC Asia Pacific was considering selling the business to help raise capital for its $3.6 billion debt stockpile.
It was suggested at a meeting between CVC and its 80 lenders last month that the site could be sold off if the company fell on hard times – signalling things might not be well in the Nine Network camp.
Nine has for more than a week declined to comment on the sale.
However, two of Cudo’s competitors have signalled a memorandum has been circulated and that Nine has indicated it will sell if it gets the right price.
One of those to confirm, who did not wish to be named, said Nine has kept “extremely quiet” about the sale.
“It’s been very 11th hour … this time last week we knew nothing about it,” the source said.
The Australian Financial Review reported this morning Cudo generates around $500,000 in profits a month and was the most profitable of the buying groups in Australia.
It’s also been reported that Ninemsn has signalled its intentions to sell up part of its 35% stake in online price comparison website iSelect.
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