XSEL to Acquire NuCom Online, China's Largest Sports Portal
04 Dicembre 2009 - 11:55AM
PR Newswire (US)
Company Welcomes New Shareholders; Significantly Increases Online
Presence BEIJING, Dec. 4 /PRNewswire-Asia-FirstCall/ -- Xinhua
Sports & Entertainment Limited (Nasdaq: XSEL; "XSEL"), a
leading sports and entertainment media company in China, announced
today that it has entered into an agreement to acquire NuCom Online
Corporation ("NuCom"). NuCom is a leading sports media company
which owns China's largest sports portal, NuBB
(http://www.nubb.com/ ). As a result of the transaction,
shareholders of NuCom including KPCB China will become shareholders
of XSEL. Launched in August 2005, NuBB provides quality and popular
broadband sports content, including live and delayed NBA games and
highlights, and has one of the largest online sports communities in
China with over 8 million registered users, 1.5 million average
daily click-thru of video highlights, and over 15 million monthly
unique visitors. The NuBB sports portal is the most advanced and
robust sports site in China with functionality that includes
fantasy sports, live chat rooms, daily updated sports news and
events. NuCom also currently possesses an internet broadband
broadcasting license in China, which allows streaming live content
on the internet, and is among only 23 non-government affiliated
companies to have attained this license by the State Administration
of Radio, Film and Television of China ("SARFT"). Under the terms
of the transaction, NuCom is valued at US$27.6 million. XSEL will
issue approximately 8.5 million American depositary shares, (or
"ADS") valued at US$1.83 per ADS. An additional 6.6 million ADS
will be issued only if NuBB achieves certain revenue targets for
2010 and 2011. Management believes NuBB may generate average annual
net income of US$2.3 million for the period between 2010 to 2012.
"XSEL is excited to welcome KPCB China as a new shareholder to the
Company," said Ms. Fredy Bush, XSEL CEO. "NuBB gives XSEL a large
internet presence which greatly enhances our overall sports media
platform." "We are very excited to see the joining of these two
companies and look forward to the many new opportunities that will
arise as a result," said Tina Ju, Managing Partner of KPCB China.
"NuCom will further enhance XSEL's position in China's media
industry and will create unparalleled choices for consumers, while
also creating long-term value for shareholders of both companies
which are consistent with our investment philosophy." Upon the
closing of the transaction, Mr. Allen Hsu will join XSEL as a new
independent director of the board. Mr. Allen is Chairman of
Pac-Link Management Corporation, a Taiwan-based venture capital
firm founded in 1998, which currently manages a portfolio of US$430
million with a focus on IC design, semi-conductor,
telecommunication, LED, and clean energy companies. In addition,
Mr. Hsu also serves as Deputy Managing Director of the Yulon Group,
a leading Taiwanese conglomerate involved in textiles and
automobile manufacturing, and is responsible for the Group's
business diversification and investment. Ms. Bush added, "We
welcome Mr. Allen Hsu as a new Director. XSEL sees significant
synergies between our two organizations with XSEL's ability to sell
advertising combined with NuBB's advanced technology, significant
traffic and online membership. In addition, we believe adding an
e-commerce component such as sports products to a site where there
are 8 million registered users represents a considerable
opportunity for a new revenue stream in the near future."
Transaction Details XSEL will issue approximately 17 million common
shares to the shareholders of NuCom (equivalent to 8.5 million
American depositary shares, or "ADS") and valued at $0.915 per
common share, or $1.83 per ADS. An additional 13.2 million common
shares (equivalent to 6.6 million ADS) will be issued if NuBB
achieves certain revenue targets for 2010 and 2011. About XSEL
Xinhua Sports & Entertainment Limited ("XSEL"; NASDAQ: XSEL) is
a leading sports and entertainment media company in China. Catering
to a vast audience of young and upwardly mobile consumers, XSEL is
well-positioned in China with its unique content and access.
Through its key international partnerships, XSEL is able to offer
its target audience the content they demand -premium sports and
quality entertainment. Through its Chinese partnerships, XSEL is
able to deliver this content across a broad range of platforms,
including television, the Internet, mobile phones and other
multimedia assets in China. Along with its integrated advertising
resources, XSEL offers a total solution empowering clients at every
stage of the media process linking advertisers with China's young
and upwardly mobile demographic. Headquartered in Beijing, the
company employs more than 1,000 people and has offices and
affiliates in major cities throughout China including Beijing,
Shanghai, Guangzhou, Shenzhen and Hong Kong. Xinhua Sports &
Entertainment Limited shares are listed on the NASDAQ Global Market
(NASDAQ:XSEL). For more information, please visit
http://www.xsel.com/ . Safe Harbor Statement This announcement
contains forward-looking statements. These statements are made
under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. Among other
things, any quotations from management in this announcement contain
forward-looking statements. Statements that are not historical
facts, including statements about XSEL's beliefs and expectations
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties that could cause actual results to
differ materially from those contained in any forward-looking
statements. Potential risks and uncertainties include, but are not
limited to, risks outlined in XSEL's filings with the U.S.
Securities and Exchange Commission, including its annual report on
Form 20-F. All information provided in this press release is as of
the date hereof, and XSEL undertakes no duty to update such
information, except as required under applicable law. For more
information, please contact: Media Contact Joy Tsang XSEL Phone:
+86-10-8567-6050; +86-136-2179-1577 Email: IR Contact Edward Liu
XSEL Phone: +86-10-8567-6061 Email: Howard Gostfrand American
Capital Ventures Phone: +1-305-918-7000; toll free +1-877-918-0774
Email: DATASOURCE: Xinhua Sports & Entertainment Limited
CONTACT: Media, Joy Tsang, XSEL, +86-10-8567-6050 or
+86-136-2179-1577, ; IR Contact, Edward Liu, XSEL,
+86-10-8567-6061, ; Howard Gostfrand, American Capital Ventures,
+1-305-918-7000, or toll free +1-877-918-0774, Web site:
http://www.xsel.com/ http://www.nubb.com/
Copyright
Grafico Azioni Xinhua Sports & Entertainment Limited ADS, Each Representing Two Class A Common Shares (MM) (NASDAQ:XSEL)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Xinhua Sports & Entertainment Limited ADS, Each Representing Two Class A Common Shares (MM) (NASDAQ:XSEL)
Storico
Da Giu 2023 a Giu 2024