Digital Generation Breakup Seen Doubling Stock Value

With Digital Generation Inc.’s stock languishing below the value of deals its executives completed in the past year, shareholders would double their money if the television and online advertising businesses were split.

A 71 percent drop since last year’s peak has left Digital Generation trading at a 44 percent discount to the value of its net assets, the cheapest multiple among U.S. ad companies larger than $250 million, according to data compiled by Bloomberg. At $295 million, its market value trails the $560 million Digital Generation spent creating its online unit through the 2011 purchases of MediaMind Technologies Inc. and EyeWonder LLC.