Endeavor (formerly WME IMG) is paying $250 million in cash to acquire NeuLion, a technology product and service provider specializing in live and on-demand streaming. NeuLion was involved with Ultimate Fighting Championship’s (UFC) stream of last year’s bout between boxer Floyd Mayweather and UFC champion Conor McGregor, a stream that resulted in numerous outages, choppy feeds and multiple lawsuits.
“Through our content portfolio, client base, and broader network of rights holders we’ve encountered many different platforms for distributing and monetizing content,” said Endeavor CEO Ari Emanuel in a statement. “NeuLion provides an ideal combination of technology and client services, and we’re excited for the value this brings to our existing partners and the foundation it provides for our future digital growth.”
Here’s what you need to know:
-Endeavor is paying $0.84 per share of NeuLion outstanding common stock.
-Subject to regulatory approval and other closing conditions, the deal is expected to close in the first quarter of 2018. NeuLion releases its Q4 2017 earnings on March 30, 2018.
-Upon closing, NeuLion will become Endeavor’s privately held subsidiary.
SportTechie Takeaway:
Endeavor and NeuLion have crossed paths before. NeuLion was responsible for powering the global streams for the Mayweather – McGregor bout last year, a fight that was important to and heavily promoted by Endeavor’s subsidiary, UFC. It was reported to be the most high-profile fight ever available via pay-per-view online streaming, but it didn’t roll without a hitch. Streaming customers experienced outages and choppy feeds, which resulted in the filing of multiple class-action lawsuits against Showtime, UFC and NeuLion. Forbes reported earlier this year that while a handful of the lawsuits had been moved to arbitration, settled or dismissed, three lawsuits against UFC and NeuLion remain on the docket in federal court in Las Vegas.
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Suggested further reading:
How Showtime Got Sued for Streaming Issues Before Mayweather Won