Skill Gaming technology firm Fun Technologies last week entered into an agreement with holding company Liberty Media Corporation, which owns interest in a broad range of electronic retailing, media communications and entertainment businesses, whereby Liberty will acquire a majority interest in Fun.
Under the agreement, a newly incorporated Canadian subsidiary of Liberty, called New Fun, will acquire all of the issued and outstanding ordinary shares in Fun Technologies in exchange for £83.7 million in cash and 32.4 million shares of New Fun. Liberty will fund the cash consideration paid by New Fun by way of a subscription for 33.8 million common shares of New Fun for the aggregate consideration of US$50 million plus approximately £83.7 million payable in cash (the amount was determined as if Liberty has purchased 10.5 million common shares at 267p each plus 23.2 million common shares at 360p each.
When the transaction is complete, Fun will become a wholly owned subsidiary of New Fun; Liberty will own 51 percent of New Fun's common shares and will appoint a majority of the members of New Fun's 11-member board of directors.
Lorne Abony, CEO of Fun Technologies, says the deal "will significantly enhance shareholder value in both the short and long term."
Meanwhile, John Malone, CEO of Liberty, explained, "We believe we can help Fun Technologies strengthen its industry leadership through collaboration with many of our programming and distribution affiliates. We have already been working successfully with FUN through GSN ('The Network for Games'), a Liberty affiliate--a relationship which underscores the effectiveness of combining compelling interactive media with television."
Liberty boasts ownership interests in some of the world's most recognized brands and companies, including QVC, Encore, Starz, IAC/InterActiveCorp, Expedia and News Corporation.