The florists are coming! The florists are coming!
It will also help United de-emphasize its fledgling access business, now that Juno and NetZero will only account for a quarter of the company's revenue mix.
On a combined basis, United and FTD rang up $1.1 billion in revenue and $169 million in operating profits over the past four quarter. That will improve as the synergies kick in. The acquisition's not just about shaving any redundant overhead. FTD, which provides floral arrangement orders and related services to roughly 45,000 floral shops worldwide, will also be able to market itself through United's other offerings.
In other words, United can send out FTD offers to its Web access subscribers and Classmates members before the key Valentine's Day and Mother's Day holidays.
Now that FTD is off the market, just a couple of years after ProFlowers.com parent Provide Commerce was sold to Liberty Media
Diversification is the right approach for United, but don't tell that to access rival Earthlink
Then again, who needs a breakup when you have a florist around to smooth things over with a conciliatory bouquet?
Other yearbook snapshots:
Longtime Fool contributor Rick Munarriz wonders if loners embrace social networking. He does not own shares in any of the companies mentioned in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.