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XSEL to Acquire China Sports Media, China's Largest Spo

编辑:AG88 日期:2019-01-18

BEIJING, Dec. 4 /PRNewswire-Asia/ -- Xinhua Sports & Entertainment Limited (Nasdaq: 网易财经XSEL; "XSEL"), a leading sports and entertainment media company in China, announced today that it has entered into an agreement to acquire China Sports Media ("CSM"), China's leading sports media rights distributor. CSM has popular domestic, Asia, and other content including the China Basketball Association (CBA), China Soccer League (CSL), AFC Champions League, Soccer's World Cup Qualifiers, AFC Asian Cup, Mission Hills Golf World Cup, FIFA Club World Cup, FIVB Volleyball World Championships and others.

CSM has over 80% of the Chinese sports television rights and distribution market, and is the long term partner of the All-China Sports Federation for its television rights business. CSM was also the working partner of the Chinese Olympic Committee.

Ms. Fredy Bush, XSEL's CEO commented, "CSM's current portfolio of popular domestic and Asia sports content combined with XSEL's wide range of international content makes us the leading sports rights owner in China. Furthermore, XSEL has a broad distribution platform that CSM will be able to utilize for its sports content."

Mr. Li Yi Dong, CEO of CSM said: "We are excited to be joining the XSEL family and look forward to working with our new colleagues to continue to grow the Company's leading position in China's burgeoning sports media market."

Under the terms of the transaction, CSM is valued at US$15.5 million, of which US$10.5 million will be paid in the form of approximately 5.7 million American depositary shares, (or "ADS") valued at US$1.83 per ADS and US$5 million in cash. Management believes that CSM may generate average annual net income of US$3.3 million for the period from 2010 to 2012.

Mr. LC Chang, a shareholder and director of CSM, will be appointed to the senior management of XSEL with the title of President, reporting to Fredy Bush, CEO, and will be appointed as a new director. Previously, Mr. Chang served as Executive Vice-President and Chief Marketing Officer of Sina.com responsible for its global operations, brand integration, marketing and online media sales. Prior to that, Mr. Chang was General Manager of Grey Advertising Taiwan from 1992 to 2000.

Ms. Bush added, "We welcome Mr. LC Chang to our senior management as President and also as a board member. We look forward to his valuable insights and contributions to XSEL's vision to become the leading sports media company in China."

Transaction Details

At the closing of the transaction, XSEL will issue an initial tranche of approximately eight million common shares (equivalent to 4,000,000 American depositary shares, or "ADS"), valued at US$0.915 per share (equivalent to US$1.83 per ADS), and pay US$1 million in cash to CSM's selling shareholder, with a further US$4 million in cash and approximately 3.4 million common shares to be delivered if CSM achieves certain net income and cash flow 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 AAAAAAAAAA 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: joy.tsang@xsel.com

IR Contact

Edward Liu

XSEL

Phone: +86-10-8567-6061

Email: edward.liu@xsel.com

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