JumpTV, an online video aggregator, has acquired CyclingTV for around $4.95 million, which is broken down into $2.21 million in cash, and $2.74 million in common stock, to be issued later this year.
The deal also includes performance-based shares that amount to a reported $6.79 million, meaning the site will need to generate nearly $11 million in revenue by July 31, 2009. CyclingTV, which streams live racing and showcases other cycling video content, earns part of its revenue from customer subscriptions, which cost $40 per year. So far, CyclingTV has about 180,000 paying subscribers. JumpTV is clearly looking to expand its own network of channels. It's also in the process of acquiring XOS broadband network, and took on SportsYa, a Hispanic sports portal, last year. JumpTV has raised $100 million in funding in an AIM IPO.
CyclingTV has recently signed distribution deals with Blinkx, the video search engine, and Joost, the Internet television company. This should all work out nicely, since JumpTV already has a distribution deal with Joost as well.