Broadband channel aggregator JumpTV has announced the acquisition of London-based Cycling.tv for £2.44m in cash (£1.09m) and shares (£1.34m). A further £3.35m in shares could be earned based on the performance of Cycling.tv over the next two years.
Cycling.tv has 18,000 subscribers, each paying on average £19 per year to access coverage of professional races. Cycling.tv owns the internet broadcast rights to major events including Vuelta a Espana, Paris Roubaix, Tour de Suisse, Criterium Dauphine du Libere and the Amstel Gold Race.
Cycling.tv said on an average monthly basis over the past 12 months, the internet video channel had approximately 130,000 unique visitors, over 200,000 live and video-on-demand stream views and approximately 10m live and video-on-demand minutes viewed across the Cycling.tv platform and all other video distribution platforms. On average, users spend 43 minutes watching Cycling.tv each session, with viewers living in 139 countries.
G Scott Paterson, chairman and CEO of Toronto-based JumpTV, said: "This acquisition is in line with our pursuit of exclusive, hard-to-find and high-affinity internet video content. Cycling is a global sport with a large and passionate international following. Moreover, we are confident that, as part of JumpTV, the world's top cycling races will be able to afford their worldwide fans the best in an online experience."
Cycling.tv CEO Simon Brydon said: "We are delighted that Cycling.tv has found a perfect home at JumpTV. By becoming a part of the JumpTV team, we are instantly able to leverage our existing roster of top-tier cycling events and industry know-how with JumpTV's proprietary content delivery network, its 'Jumper' API media player and global distribution partnerships—factors which we believe will add experiential value to our viewers, expand our overall viewership and add to the value proposition for our advertisers.
Brydon continued: "To date Cycling.tv has focused on the sport of professional bike racing and while this will always be core to the Company, this also gives us an opportunity to develop our leisure cycling and recreational biking content which we believe will widen our appeal even further."
Cycling.tv generated, on an unaudited basis, £229,860 of revenue in the five months to the end of May and an operating loss of £167,411 during the same period.
JumpTV offers more than 290 streamed TV channels from over 75 countries.
Lovelace Consulting | 10.08.2007