ITV is understood to have put its social networking website Friends Reunited up for sale in a move to be announced in its annual results next month.
The decision to put sell the business is part of a wider cost cutting drive that will include a possible cut of 10% of the company’s workforce.
ITV acquired Friends Reunited in 2005 in a deal worth £120 million. The terms of the deal would have seen ITV pay another £55 million this year and it is understood that at least part of this has been paid.
Friends Reunited has not been the success ITV would have hoped for, with other social networking sites such as Facebook proving more popular.
Last November ITV announced in a trading statement that its online revenues were up by 6% year on year to £25 million following a 472% increase in video viewing (see ITV sees 2.5% drop in net ad revenue).
However, it also reported a 2.5% drop in net advertising revenue in the first nine months of 2008, although this was better than the 3.2% fall for the total TV market.
ITV announces its annual results on March 4.
Related Links
