Xinhua Sports Buys Sports Site NuBB For $27.6 Million & Sports Distributor for $15.5 Million


Xinhua Sports & Entertainment, the Nasdaq-traded Chinese sports media company that was initially focus on finance (though Xinhua Fiannce but changed name last year), has signed a deal to acquire NuCom Online, the local sports company that operates sports portal, NuBB. NuCom investor KPCB China will become shareholders of XSEL., the company said. The value of the deal: $27.6 million in stock. XSEL will issue about 8.5 million shares valued at $1.83 per share and an additional 6.6 million ADS will be issued only if NuBB achieves certain revenue targets for 2010 and 2011. NuBB may generate average annual net income of $2.3 million for the period between 2010 to 2012. Launched in August 2005, NuBB has, among other things, live and delayed NBA games. Release.

Xinhua Sports also announced another acquisition today, of China Sports Media, the local sports media rights distributor.

It says CSM has rights for leagues such as the China Basketball Association (CBA), China Soccer League (CSL), AFC Champions League, Soccer’s World Cup Qualifiers, AFC Asian Cup, Mission Hills Golf World Cup, FIFA Club World Cup, FIVB Volleyball World Championships and others. CSM is valued at $15.5 million in this deal, of which $10.5 million will be paid in the form of about 5.7 million shares, valued at $1.83 per share and $5 million in cash. Management believes that CSM may generate average annual net income of $3.3 million for the period from 2010 to 2012. Release.

Comments are closed.