The holding company owning interests in a broad range of businesses, including QVC, Encore, Starz, InterActiveCorp, Expedia and News Corporation, has agreed to acquire the online gaming provider in a cash and share deal.
The transaction will be structured as a Scheme of Arrangement under which a newly incorporated Canadian subsidiary of Liberty Media (New FUN) will acquire all of the issued and outstanding ordinary shares in FUN Technologies in exchange for an aggregate consideration consisting of 32.4 million common shares of the new company and £83.7 million in cash, including a £28 million injection in FUN\’s balance sheet.
If the Scheme becomes effective FUN will become a wholly-owned subsidiary of New FUN, and Liberty will own 51% of New FUN\’s common shares, while the current FUN shareholders will own or will hold the right to acquire the remaining 49% of New FUN.
“We are pleased to be making this investment in FUN. Lorne Abony and the FUN management team have an impressive record of achievement and we look forward to welcoming their entrepreneurial talent and leadership into the Liberty family,” said John Malone, Chairman and Chief Executive Officer of Liberty Media.
“We believe we can help FUN strengthen its industry leadership through collaboration with many of our programming and distribution affiliates. We have already been working successfully with FUN through GSN, a Liberty affiliate – a relationship which underscores the effectiveness of combining compelling interactive media with television. We look forward to building FUN\’s businesses by combining FUN\’s leadership in online skill games with Liberty\’s media assets and expertise in using video to build popular brands and services,” he added.
“This is a landmark achievement, both for FUN stakeholders, and for the future prospects of FUN\’s businesses. We believe that this transaction will significantly enhance shareholder value in both the short and long term. Liberty is the right strategic partner to enable FUN\’s businesses to realize their full potential, through access to Liberty\’s world-class media and entertainment properties and affiliates,” commented Lorne Abony, Co-founder and Chief Executive Officer of FUN.
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