Endeavor purchases NeuLion for $250 million

March 26, 2018

Endeavor has purchased NeuLion for a reported $250 million in cash.  NeuLion provides digital video broadcasts of sporting and entertainment events and has been involved in UFC and boxing matches including last year’s Mayweather-McGregor PPV.

The deal calls for Endeavor to pay $0.84 per share of NeuLion outstanding common stock.  The deal is expected to close in the first quarter of 2018 pending regulatory approval and other closing conditions.  Once the deal is final, NeuLion will become Endeavor’s privately held subsidiary.

According to the Sports Business Journal, NeuLion has experienced “pressure on revenue from the loss” of the NHL as a digital media partner.

Payout Perspective:

NeuLion came under fire during the Mayweather-McGregor PPV as global streams for the fight were not working, or experienced bad streaming.  Class-action lawsuits arose against Showtime, the UFC and NeuLion.  However, it appears that most of those lawsuits have been settled.  The purchase of NeuLion allows for the UFC to utilize its technology and revamp its direct-to-consumer model.  Daniel Cohen, Octagon Media Rights Consulting Senior VP noted that UFC Fight Pass is at more than 400,000 subscribers and is seeking an increase in its media-rights.

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