Fun Technologies, the London-HQd online and casual gaming firm majority owned by Liberty Media, has bought out St. Louis, MO-based fantasy sports operator CDM Sports, for up to $10 million. Fun will pay $4.25 million in cash, $0.75 million in the form of its shares, and a $5 million earnout. CDM has 44 games (baseball and football being its specialty), played by about 200,000 customers in eight sports, it said. In 2005, CDM recorded sales of $8 million and EBITDA of about $1 million.
CDM recently got a legal boost when its request for summary judgment against Major league Baseball’s digital media arm MLBAM was granted in federal court Tuesday. The trial was pitting the rights of a fantasy sports league operator to use stats and player names versus MLB’s contention that such use is commercial and requires a license.
Fun, meanwhile, has been buying sites left, right and center…this is its sixth acquisition in a year. Others are listed here.
— Federal Court Says MLBAM Can’t Halt Use Of Player Names, Stats
— Court Case Centers On Use Of Players’ Names; Could Scorch Fantasy Leagues
— Company Challenges MLB â