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Ziff Davis & Accenture’s $1.2 Billion Deal Crystallizes Hidden Portfolio Value!

Ziff Davis reported its second quarter of fiscal year 2026 results amid significant corporate activity, including completing the sale of its Connectivity business to Accenture for $1.2 billion—a transaction valuing that segment at a 14.5x multiple of trailing adjusted EBITDA less CapEx. This divestiture underscores Ziff Davis’s active portfolio management approach aimed at closing the gap between market valuation and intrinsic business value. The company has also been engaged in sizeable share repurchases, buying back approximately 4.5 million shares in 2026 to reduce share count by nearly 11%, supporting adjusted earnings per share growth despite a year-over-year revenue decline. The company now reports on four remaining segments following the Connectivity sale: Tech & Shopping, Gaming & Entertainment, Health & Wellness, and Cybersecurity & Martech. Consolidated revenue declined 2.7% year-over-year to $286.7 million, and adjusted EBITDA declined 3.7% to $76.8 million. Despite this, adjusted EPS increased 13.2% to $1.