SportsLine Gets GolfWeb in $15 Million Deal
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SportsLine USA Inc., publisher of CBS SportsLine, is acquiring GolfWeb, a privately held Internet company that provides golf-related content, interactive entertainment, membership services, and merchandise.
GolfWeb also operates international Web sites targeted to golf enthusiasts in Japan, the United Kingdom, Canada, and Australia.
The acquisition will dramatically expand the coverage of golf on SportsLine USA's Web sites, which, in addition to CBS SportsLine, include the official Web sites of Tiger Woods, Arnold Palmer, John Daly, The Golf Channel, and Golf Holidays.
The deal provides for SportsLine USA to acquire all the outstanding capital stock of GolfWeb in a merger in exchange for approximately 860,000 shares of SportsLine USA common stock. Based on the five-day average closing price of SportsLine USA's common stock through January 14, the value of the shares to be issued to GolfWeb's shareholders in connection with this transaction is approximately $14.85 million.
"GolfWeb instantly allows us to significantly expand the depth and breadth of our golf coverage to exceed that of any Web site in the world," said Michael Levy, president and CEO of Fort Lauderdale, FL-based SportsLine USA.
"With GolfWeb's outstanding international content, coupled with our extensive marketing and distribution relationships, we have now become the world's leader in online golf information."
GolfWeb claims eight million monthly page views. In addition to golf news coverage, it has a worldwide golf course directory with information on 21,000 golf courses, as well as an online discount golf pro shop. There are also fantasy golf leagues, golf classifieds, a golf auction, online stats tracking and game improvement and online instruction.
The business model is based on revenue from multiple revenue streams: advertising, product sales, membership and services.