Pale Fire Capital Adds to Ziff Davis Stake Valued at $117 Million, According to Recent SEC Filing
Key Points
Pale Fire Capital SE added 1,573,414 shares of Ziff Davis; estimated transaction value of $57.86 million based on quarterly average pricing
Quarter-end position value increased by $74.26 million, reflecting both trade and price appreciation
Transaction represented a 5.08% increase relative to fund’s 13F assets under management
Stake at quarter-end: 2,783,366 shares, valued at $116.79 million
Ziff Davis now accounts for 10.26% of reportable holdings, which places it outside the fund’s top five holdings
- 10 stocks we like better than Ziff Davis ›
What happened
Pale Fire Capital SE reported buying 1,573,414 shares of Ziff Davis (NASDAQ:ZD) in its quarterly disclosure to the U.S. Securities and Exchange Commission (SEC filing) dated May 14, 2026. The estimated value of the trade is $57.86 million, calculated using the average closing price for the first quarter of 2026. The quarter-end value of the position rose by $74.26 million, a figure that incorporates both trading activity and price movement.
What else to know
The fund increased its Ziff Davis holdings, which now comprise 10.26% of its 13F assets under management.
Top five holdings after the filing:
- NYSEMKT: BTG: $315.92 million (27.8% of AUM)
- NYSE: DOLE: $134.72 million (11.8% of AUM)
- NASDAQ: GRPN: $121.15 million (10.6% of AUM)
As of May 13, 2026, Ziff Davis shares were priced at $40.53, up 19.2% over the past year, underperforming the S&P 500 by 7.22 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.45 billion |
| Net income (TTM) | $36.77 million |
| Price (as of market close May 13, 2026) | $40.53 |
| One-year price change | 19.24% |
Company snapshot
Ziff Davis, Inc. is a diversified digital media and technology company with a portfolio spanning content, commerce, and cloud-based services. The company leverages its well-known brands and scalable technology platforms to drive audience engagement and recurring revenue streams.
The company operates digital media brands such as IGN, PCMag, RetailMeNot, Mashable, and Everyday Health, as well as cloud-based cybersecurity and martech subscription services. It generates revenue through advertising, affiliate marketing, subscription fees, and SaaS offerings across its digital media and cybersecurity segments.
Ziff Davis, Inc. serves a global audience of consumers, businesses, and healthcare professionals seeking technology, shopping, entertainment, and health information. Its strategic focus on digital media and cybersecurity positions it as a leader in providing information and solutions to both consumers and businesses worldwide.
What this transaction means for investors
Ziff Davis operates a digital media and internet portfolio in which stronger business segments are required to offset ongoing challenges in technology and shopping. The company owns brands spanning gaming and entertainment, health and wellness, cybersecurity, martech, and consumer technology, which provide revenue streams beyond advertising.
The company’s first-quarter results highlight the need for further validation of this business mix. Revenue from continuing operations declined 1.9% year over year to $267.6 million, and adjusted EBITDA decreased to $63.4 million from $71.4 million. These figures indicate ongoing pressure in certain segments, but Ziff Davis also generates revenue through health, gaming, cybersecurity, and martech, which diversifies its monetization beyond advertising.
For investors, the portfolio reset is significant because Ziff Davis must now demonstrate that its remaining businesses can generate earnings without its Connectivity division. While share repurchases may support per-share value, consistent cash generation from the ongoing portfolio is more critical. The clearest indicator of progress would be stabilization in technology and shopping, along with sustained contributions from health, gaming, cybersecurity, and martech
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends B2Gold. The Motley Fool has a disclosure policy.
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