Versant Media to Sell SportsEngine App to PlayMetrics

Key Deal Highlights

Versant Media Group Inc. has reportedly agreed to sell its youth-sports application, SportsEngine, to competitor PlayMetrics. The news prompted a significant, albeit temporary, surge in Versant Media's stock, which climbed as much as 7% during Friday trading before retracting.

Deal Background and Valuation

The transaction follows Versant Media's decision in October to hire Lazard Ltd. to explore a sale of the platform. At that time, Bloomberg reported that the SportsEngine application was valued between $400 million and $500 million. The exact financial terms of the current deal with PlayMetrics, which is backed by Genstar Capital, have not been disclosed.

Market and Industry Impact

This acquisition marks a consolidation within the competitive youth sports technology market. The initial positive stock reaction indicates investor approval of the divestiture, viewing it as a strategic move to streamline Versant Media's portfolio, which includes assets like the Golf Channel and E!.

Summary

While the official announcement and financial details are pending, the sale of SportsEngine to PlayMetrics is a notable strategic step for Versant Media. Market participants will be closely watching for the formal disclosure to assess the full financial impact on the company.

FAQ

Q: Which company is buying SportsEngine?
A: PlayMetrics, a competitor backed by private equity firm Genstar Capital, has reportedly agreed to acquire SportsEngine.

Q: How did Versant Media's stock react to the news?
A: Versant Media's shares rose as much as 7% following the report before giving back some of the gains.

Source: Investing.com