JumpTV Buys Cycling.tv For $5 Million
By Rafat Ali - Thu 09 Aug 2007 08:58 PM PST
JumpTV (AIM: JTV) (TSX: JTV), the Canada-headquartered online video aggregator, has made another small acquisition, with its usual propensity for complex cash+shares+performance based deals: it has bought London-based Cycling TV, for about $4.95 million. The total price consists of $2.21 million in cash, about $2.74 million in common stock, which will be issued later this year. The agreement also includes performance-based shares equal to about $6.79 million..for that, revenues for the 24 month period ended July 31, 2009 would need to exceed $10.99 million.
The subscription site, founded in 2003, currently has about 18,000 paying subscribers who pay, on average, an annual fee of about $40. In 2006, Cycling.tv streamed more than 130 live racing days of cycling and currently averages more than 12 live streamed race days per month, it said. It has long term rights for cycling races including Vuelta a Espana (one of the three European “Grand Tour” races), Paris Roubaix, Tour de Suisse, Criterium Dauphine du Libere and the Amstel Gold Race.
Simon Brydon, the current CEO of Cycling.tv, will continue in his position, and the site will remain separate. It will become part of the JumpTVSports division along with the soon-to-be-acquired XOS Broadband Network, which it is acquiring for $60 million and JumpTV’s Hispanic sports portal, SportsYa.com, which it bought last year. Jump recently raised $100 million in an AIM IPO.
Posted in: Broadband, Countries, Canada, UK & Europe, Entertainment, Sports, VC+M&A
