NeuLion Enters Into Purchase Agreement With An Affiliate of Fortress Investment Group To Sell Certain DivX Assets, Intellectu...
19 Diciembre 2017 - 4:43PM
NeuLion, Inc. (TSX:NLN), a leading technology product and service
provider that specializes in the digital video broadcasting,
distribution and monetization of live and on-demand content to
Internet-enabled devices, today announced that on December 18,
2017, it entered into an agreement to sell certain DivX assets,
intellectual property and subsidiaries to an affiliate (“Fortress”)
of Fortress Investment Group LLC (NYSE:FIG).
The company will sell to Fortress certain DivX assets,
intellectual property and subsidiaries that are not core to
NeuLion’s focus on the over-the-top (“OTT”) market. NeuLion
expects that the transaction will provide it with lower operating
costs and provide capital that the company can leverage as it
expands its presence in the global OTT arena.
As the OTT market continues to expand globally, NeuLion is
perfectly positioned to take advantage of these new opportunities
with its OTT technology and services enabled by the NeuLion Digital
Platform, including the consumer electronics 4K market with its
NeuLion CE SDK, and the video compression H.265 market, powered by
the MainConcept line of CODEC tools. NeuLion technology and
services provide its customers with an end-to-end platform,
solutions that enable digital content management, distribution and
monetization across the entire video ecosystem - content owners,
content creators and consumers.
Pursuant to the Purchase Agreement, NeuLion will sell certain
DivX assets, intellectual property and subsidiaries to Fortress for
cash consideration of $41.5 million, subject to adjustment as
specified in the Purchase Agreement. These assets accounted
for approximately $15.0 million and $20.7 million of the company’s
consolidated GAAP revenues for the nine months ended September 30,
2017 and the year ended December 31, 2016, respectively.
NeuLion also expects to significantly reduce employee headcount
across various departments of the company that have been assigned
to DivX. The transactions contemplated by the Purchase
Agreement are expected to close during Q1 2018.
A PDF accompanying this announcement is available
at http://resource.globenewswire.com/Resource/Download/275e602e-5795-4ff2-b754-d59e12ad7457
About NeuLion
NeuLion, Inc. (TSX:NLN) offers solutions that power the highest
quality digital experiences for live and on-demand content in up to
4K/HDR on any device. Through its end-to-end technology
platform, NeuLion enables digital video management, distribution
and monetization for content owners worldwide including the NFL,
NBA, EFL, World Surf League, Univision, Sky Sports, Eleven Sports
Network and others. NeuLion powers the entire video ecosystem
for content owners and rights holders, consumer electronic
companies, and third party video integrators through its
MainConcept business. NeuLion’s robust consumer electronics
licensing business enables its customers like Sony, LG, Samsung and
others to stream secure, high-quality video seamlessly across their
consumer devices. NeuLion is headquartered in Plainview, NY.
For more information about NeuLion, visit www.NeuLion.com.
Forward-Looking Statements
Certain statements herein are forward-looking statements and
represent NeuLion’s current intentions in respect of future
activities. Forward-looking statements can be identified by
the use of the words “will,” “expect,” “seek,” “anticipate,”
“believe,” “plan,” “estimate,” “expect,” and “intend,” statements
that an event or result “may,” “will,” “can,” “should,” “could,” or
“might” occur or be achieved, and other similar expressions.
These statements, in addressing future events and conditions,
involve inherent risks and uncertainties. Although the
forward-looking statements contained in this release are based upon
what management believes to be reasonable assumptions, NeuLion
cannot assure readers that actual results will be consistent with
these forward-looking statements. These forward-looking
statements are made as of the date of this release and NeuLion
assumes no obligation to update or revise them to reflect new
events or circumstances, except as required by law. Many
factors could cause NeuLion’s actual results, performance or
achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by
such forward-looking statements, including: our ability to
derive anticipated benefits from acquisitions; our ability to
realize some or all of the anticipated benefits of our
partnerships; our ability to increase revenue; general economic and
market segment conditions; our customers’ subscriber levels and
financial health; our ability to pursue and consummate acquisitions
in a timely manner; our continued relationships with our customers;
our ability to negotiate favorable terms for contract renewals;
competitor activity; product capability and acceptance rates;
technology changes; regulatory changes; foreign exchange risk;
interest rate risk; and credit risk. These factors should be
considered carefully and readers should not place undue reliance on
the forward-looking statements. A more detailed assessment of
the risks that could cause actual results to materially differ from
current expectations is contained in the “Risk Factors” section of
NeuLion’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2016, which is available on www.sec.gov and filed on
www.sedar.com.
CONTACT INFORMATION
Press Contact: Chris Wagner +1 516 622 8357
Investor Relations Contact: Rob Kelly +1 416 992 4539
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