United Online Completes Spinoff Of FTD, Reverse Split; Declares Dividend

If you owned United Online(UNTD) prior to Friday and are trying to figure out what happened to your portfolio, better get a scorecard. The security underwent a series of changes Friday as the company completed its spin off of FTD Companies(FTD). For every five shares of United owned, shareholders received one share of FTD. Following the spinoff, United executed a one-for-seven reverse split. So a shareholder who held(let’s make this easy) 700 shares of United would now have 140 shares of FTD and 100 of UNTD.

Each company has begun down its own path. FTD was honored with ringing the Nasdaq opening bell on Friday, and took United’s place in the S&P SmallCap 600. United declared a $.15 per share dividend.

FTD has seasoned leadership in place and a strong business. It is likely to thrive as an independent company, no longer tied to a motley collection of internet assets. The remaining business faces more struggles. It is still looking for a management team for its set of moribund and declining businesses, plus a patent portfolio which it hopes to monetize. In the meantime, it continues generate significant cash flow.

Disclosure: The author holds no position in any stock mentioned