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Market: TSX
Sector: Broadcasting & Entertainment
EPIC: SCR
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Score Media
www.scoremedia.ca

Score Media Inc. is a media company committed to delivering interactive and authentic sports entertainment.

Full Score Media profile here
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Rogers buys sports broadcaster Score Media for $167 mln

27th Aug 2012, 8:03 am by Joyanta Acharjee
The Rogers bid is at a 5.2 per cent premium to Score Media's shares price on Friday. The Rogers bid is at a 5.2 per cent premium to Score Media's shares price on Friday.

Rogers Communications (TSE:RCI)(NYSE:RCI) has agreed to buy sports broadcaster Score Media Inc. (TSE:SCR) in a transaction valued at $167 million, or $1.62 per share.

The Rogers bid is at a 5.2 per cent premium to Score Media's shares price on Friday. The purchase price includes assumption of Score Media debt and an investment of $12 million in Score Digital. 

Shares of Score Media jumped nearly 47 per cent Friday following reports that the specialty TV sports broadcaster was in discussions to be purchased by Rogers and last traded at $1.54 before being halted Friday. 

"Rogers Media is on a growth trajectory and this builds on our momentum of delivering world-class sports content anywhere, any time, on any platform," Rogers Media president Keith Pelley said.

"The Score 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."

John Levy, founder, chairman and CEO of Score Media added: "As part of Rogers Media’s inventory of sports properties, its extensive programming assets and senior management’s commitment to securing premium sports content, I am confident the network will continue to grow and contribute to the Canadian sports scene.

"This deal allows us to continue to pursue our vision and strategy that has formed a huge part of what we’ve been doing at Score Media for some time. We can now focus 100 per cent on our digital products, building on the tremendous strides we have made in growing the international audience of our website and mobile apps."

Score Media, which is based in Toronto, has been reportedly shopping around its assets for about a year, with some reports suggesting that chief executive John Levy was hoping to sell for $200 million. The broadcaster's shares were halted Friday afternboon. Its market capital as of the trading halt was $126 million.

The Score runs third place among rival Canadian sports channels TSN, owned by BCE's (TSE:BCE) Bell Media, and Rogers Sportsnet. Once the deal receives regulatory approvals, the television network would be rebranded under the Sportsnet umbrella.

Rogers said in a statement that 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 interest. 

Rogers Media will also have access to Score Media's digital technology to immediately enhance its mobile offerings.

Last week, Rogers and rival BCE completed their $1.07 billion acquisition of Maple Leaf Sports and Entertainment and its sports television channels.

Rogers' bid for Score is expected to clear scrutiny from broadcast and competition regulators, is the latest in flurry of acquisitions of television assets by telecom giants in the last two years. 

Beginning with Shaw Communications's (TSE:SJR.B) purchase of the Global television network and Canwest specialty channels in late 2010, virtually every major broadcast asset in the country has been snapped up under Shaw, BCE or Rogers.

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