Rogers Media – RCI – To Acquire theScore Television Network

NYSE: RCI) announced it is acquiring all of the outstanding shares of Score Media Inc., and will wholly own theScore Television Network and related television assets.

The acquisition of Score Media does not include its digital media business, including theScore.com website and mobile applications.  Immediately prior to the acquisition, Score Media’s digital assets will be spun out to its existing shareholders, with Rogers Media retaining a 10 per cent equity interest in the digital media business. Rogers Media will also have access to Score Media’s digital technology to immediately enhance its mobile offerings.

The acquisition builds on RCI’s rich history in sports and reinforces its commitment to delivering premium sports content to its audiences on their platform of choice.  Upon receipt of final regulatory approvals, the television network will be rebranded under the Sportsnet umbrella.

“We continue to pursue opportunities to engage, expand and enhance the experience for sports fans.  Rogers Media is on a growth trajectory and this builds on our momentum of delivering world-class sports content anywhere, anytime, on any platform,” said Keith Pelley, President, Rogers Media.  “theScore is a tremendous sports service that offers a distinct flavour of premium, niche programming that fits squarely within our strategy of delivering highly sought-after content to Canadians.”

Score Media owns theScore Television Network, closed captioning service Voice to Visual Inc., and mixed martial arts promotion The Score Fighting Series, as well as the digital media business being spun out to its shareholders.  theScore Television Network is a national specialty television service providing sports news, information, highlights and live event programming across Canada. It is Canada’s third largest specialty sports channel with 6.6 million television subscribers generating approximately $45 million of annual subscription and advertising revenues and approximately $15 million of annual earnings before interest, taxes, depreciation and amortization (EBITDA).

The total consideration payable by Rogers Media in connection with the transaction, including consideration payable to Score Media’s shareholders, consideration for the 10 per cent equity interest in the digital media business, and repayment of Score Media’s third-party debt and transaction expenses, is $167 million.

About Rogers Media Inc. – RCI

Rogers Media Inc., a division of Rogers Communications (RCI), is a diversified leading Canadian media company that engages in television and radio broadcasting, publishing, digital, and sports entertainment.  Rogers Broadcasting has 55 AM and FM radio stations across Canada; television properties include six Citytv stations, five OMNI multicultural television stations, Sportsnet (consisting of four regional channels and the nationally-distributed Sportsnet ONE and Sportsnet World), and The Shopping Channel, a televised and internet shopping service.  Rogers Publishing produces many well-known consumer and online magazines, such as Maclean’s, Chatelaine, L’actualité, Canadian Business, and is the leading publisher of a number of industry, medical and financial publications.  Rogers Media’s suite of digital assets reaches 17 million unique visitors per month through more than 1,000 premium owned + exclusive and extended network sites.  Rogers Media Inc. owns Rogers Centre stadium, a year-round sports and entertainment facility, and the Toronto Blue Jays Baseball Club.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.