Ziff Davis, the digital media subsidiary of j2 Global Communications Inc. (NASDAQ:JCOM) has acquired Ookla, maker of the highly popular Speedtest.net application. In the announcement, the terms of the acquisition were not made public, although j2 Global claims it will not have a material impact on the company’s finances.
Ookla, which brands itself as the “definitive source for global internet metrics,” offers a suite of applications geared toward consumer and enterprise broadband performance testing. One of these is Speedtest.net, which is available for both web and mobile platforms. The company also offers enterprise-oriented NetGauge, which enables businesses to manage connectivity performance using the same technologies that run Speedtest. Meanwhile, NetMetrics utilizes the data that Ookla has connected in understanding real-time global network performance.
Previously, Bright Side of News* reported on j2 Global’s most recent quarterly performance, during which the company posted record gains, with a 13 quarter dividend increase streak, likewise beating analyst expectations with 20% growth in revenue and likewise a marginal increase in earnings per share.
In that particular report, j2 Global was cited to have placed emphasis on video and rich content as part of its strategy in the performance of its advertising assets. Ziff Davis runs popular online properties like gaming website IGN Entertainment, as well as Ask Men and PC Magazine, where the company says video will be “key in the future success of online advertising.”
Thus, the acquisition of Ookla will be in sync with the company’s focus in ensuring optimized access to rich media such as video and other dynamic content. Even with fixed and mobile broadband increasing in speed, actual connection quality often varies depending on location.
j2 Global expects its full year revenue to be within the $580 to $600 million range, and the company expects high sequential growth figures from Q3 to Q4 this year, consistent with the trend during the holiday season. With its acquisition of network-related big data, it is highly likely that j2 Global’s digital assets will enjoy optimized delivery of content across its audience.