JumpTV Acquires XOS Broadband Network Unit For $60.25M
By Eric Fisher, Staff Writer, SportsBusiness Journal
JumpTV, a Toronto-based provider of live TV broadcasts over the Internet, has purchased the broadband network business of Florida-based XOS Technologies in a deal valued at US$60.25M. The broadband network business -- which maintains official Web sites for more than 150 major collegiate athletic programs and pro teams, helps distribute a variety of live and on-demand sports programming, and develops social networking and ticketing applications -- will be primarily folded into the JumpTV Sports division, to be run by Nada Usina, President of the XOS broadband network. Usina previously worked in Canada as President of Nokia Canada and is a native of the country, but the unit will remain in Florida as a wholly-owned and operated subsidiary of JumpTV.
DETAILS: The deal is scheduled to close next month after expected regulatory approvals. JumpTV, whose other sports programming includes Webcasts of qualifying matches from the Euro 2008 soccer tournament, works via a combination of PPV and ad-supported models. The XOS transaction is roughly 15 times revenue, as JumpTV said XOS' unaudited financial results for the broadband network in '06 showed revenue of $4.26M and an operating loss of $6.8M. Unaudited results for the first five months of '07 were revenue of $2.45M and an operating loss of $3.17M. "Sports programming on JumpTV is consistently among our most-watched content," said JumpTV Chair & CEO G. Scott Peterson. "Adding the expertise of XOS will accelerate our ability to obtain rights to important international sporting events."
XOS: XOS Technologies' other, non-fan facing businesses, most notably their coaching solutions and facility design divisions, are not part of the deal and will continue as is. To that end, XOS' release on the deal mentions the transaction allowing the company "to be dedicated and focused on its original mission; solutions for teams, video personnel, management and coaches in all sports." XOS Technologies CEO Rich Ruben said, "JumpTV is a clear leader in live Internet video, and this is going to provide a whole new level of global scale and infrastructure to grow that business."
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