US media giant shops around for uSwitch

Thursday, 16, Mar 2006 04:28

Online price comparison website uSwitch.com has agreed to a £210 million takeover by US media giants EW Scripps.

The website, which enjoyed considerable success since its launch in 2000 and last year reported revenues of £14 million, has established itself as the UK's leading price comparison website.

Scripps, which owns a number of TV stations, newspapers and websites across the Atlantic, sees the online comparison market as extremely lucrative and will team uSwitch up with its own Shopzilla service.

Andrew Salmon, uSwitch chief executive, insisted that the deal would enable the website to expand its range of services and broaden its market share.

"Comparison shopping for essential home services is already popular with consumers, but there is still ample room for growth," Mr Salmon said.

"With Scripps' broader vision for interactive media and support for our ambition to be the premium brand for choosing essential home services and personal finance products, we are now in an even stronger position to continue our growth in the UK and abroad."

Scripps president and chief executive Kenneth W Lowe also believes that the price comparison market has potential for growth and is hopeful that the deal will benefit both shareholders and consumers.

"The addition of uSwitch to our portfolio of interactive businesses, including Shopzilla, is intended to position Scripps to take full advantage of the rapid growth of online comparison shopping for both products and essential home services," Mr Lowe said.

"An increasing number of consumers in the UK have found uSwitch.com to be a valuable online resource when shopping for energy, communications and personal finance services.

"We believe the uSwitch service and brand provide a sturdy platform on which we can expand into Europe and beyond."

Scripps has confirmed that Mr Salmon will remain as uSwitch chief executive after the takeover has been completed.

Price comparison sites have grown in popularity in recent years as consumers attempt to negotiate the increasing number of energy, phone, TV and internet providers on the market.

Sites such as uSwitch do not charge consumers for comparison services, but derive their revenues in the form of click-throughs and commission if users decide to sign up for a deal with a new supplier from the site.

Earlier this year, uSwitch revealed that it was considering a possible stock market flotation as part of expansion plans.