TORONTO and LOS ANGELES, May 8,
2019 /CNW/ - The Stars Group Inc. (Nasdaq: TSG)(TSX:
TSGI) and FOX Sports, a unit of Fox Corporation (Nasdaq: FOXA,
FOX), today announced plans to launch FOX Bet, the first-of-its
kind national media and sports wagering partnership in the United States. The Stars Group and FOX
Sports have entered a long-term commercial agreement through which
FOX Sports will provide The Stars Group with an exclusive license
to use certain FOX Sports trademarks.
The Stars Group and FOX Sports expect to launch two products in
the Fall of 2019 under the FOX Bet umbrella. One will be a
nationwide free-to-play game, awarding cash prizes to players who
correctly predict the outcome of sports games. The second product,
which will be named FOX Bet, will give customers in states with
regulated betting the opportunity to place real money wagers on the
outcome of a wide range of sporting events in accordance with the
applicable laws and regulations.
In addition to the commercial agreement of up to 25 years and
associated product launches, Fox Corporation will acquire
14,352,331 newly issued common shares in The Stars Group,
representing 4.99% of The Stars Group's issued and outstanding
common shares, at a price of $16.4408
per share, the prevailing market price leading up to the
commencement of exclusive negotiations. The Stars Group currently
intends to use the aggregate net proceeds of approximately
$236 million for general corporate
purposes and to prepay outstanding indebtedness on its first lien
term loans. The common shares issued to Fox Corporation are subject
to certain transfer restrictions for two years, subject to
customary exceptions.
Rafi Ashkenazi, Chief Executive Officer of The Stars Group said:
"We believe this strategic partnership uniquely positions us to
build a leading betting business in the U.S., which represents one
of the most exciting long-term growth opportunities for our
company. Leveraging our proven media partnership strategy with Sky
Sports in the UK, we are excited to partner with FOX Sports to
integrate wagering into sports media and drive customer acquisition
and retention in the U.S."
Eric Shanks, Chief Executive
Officer and Executive Producer of FOX Sports added: "FOX Sports is
already synonymous with the best live sports events in the country
and now we are expanding the way we immerse fans in the sports
culture they love. Digital sports wagering represents a growing
market opportunity that allows us to diversify our revenue streams,
connect directly with consumers and expand the reach of the FOX
Sports brand."
Under the commercial agreement, FOX Sports will grant to The
Stars Group an exclusive license for the use of certain FOX Sports
trademarks for a range of immersive games and online sports
wagering, and certain exclusive advertising and editorial
integration rights on certain FOX Sports broadcast media and
digital assets. As part of the transaction, FOX Sports will
receive certain brand license, integration and affiliate
fees. In addition, during the term of the commercial
agreement, The Stars Group has agreed to a minimum annual
advertising commitment on certain FOX media assets. Prior to the
tenth anniversary of the commercial agreement, and subject to
certain conditions and applicable gaming regulatory approvals, FOX
Sports has the right acquire up to a 50% equity stake in The Stars
Group's U.S. business.
Moelis & Company LLC acted as financial advisor and
Proskauer Rose LLP and Jones Day
acted as legal advisors to The Stars Group. Jenner & Block LLP
and Paul Hastings LLP acted as legal advisors to FOX Sports.
All references in this new release to "$" are to U.S.
dollars.
The Stars Group Investor Conference Call
An investor conference call will take place tomorrow,
Thursday, May 9, 2019 at
approximately 7:30 am ET.
To access via tele-conference, please dial +1
866-342-8588 or +1 203-518-9865 ten minutes prior to the
scheduled start of the call. All participants must enter passcode
15853# to join the call.
The playback will be made available two hours after the event at
+1 844-512-2921 or +1 412-317-6671. The Conference ID number is
134569.
To access the webcast please use the following
link: http://public.viavid.com/index.php?id=134569
About The Stars Group
The Stars Group is a provider of technology-based product
offerings in the global gaming and interactive entertainment
industries. Its brands have millions of registered customers
globally and collectively are leaders in online and mobile betting,
poker, casino and other gaming-related offerings. The Stars Group
owns or licenses gaming and related consumer businesses and brands,
including PokerStars, PokerStars Casino, BetStars, Full Tilt,
BetEasy, Sky Bet, Sky Vegas,
Sky Casino, Sky Bingo, Sky Poker,
and Oddschecker, as well as live poker tour and events brands,
including the PokerStars Players No Limit Hold'em Championship,
European Poker Tour, PokerStars Caribbean Adventure, Latin American
Poker Tour, Asia Pacific Poker Tour, PokerStars Festival and
PokerStars MEGASTACK. The Stars Group is one of the world's most
licensed online gaming operators with its subsidiaries collectively
holding licenses or approvals in 21 jurisdictions throughout the
world, including in Europe,
Australia, and the Americas. The
Stars Group's vision is to become the world's favorite iGaming
destination and its mission is to provide its customers with
winning moments.
About FOX Sports
FOX Sports is the umbrella entity representing Fox Corporation's
wide array of multi-platform US-based sports assets. Built
with brands capable of reaching more than 100 million viewers in a
single weekend, the business has ownership and interests in linear
television networks, digital and mobile programming, broadband
platforms, multiple web sites, joint-venture businesses and several
licensing relationships. FOX Sports includes the sports
television arm of the FOX Network; FS1, FS2, FOX Soccer Plus and
FOX Deportes. FOX Sports' digital properties include FOXSports.com
and the FOX Sports App, which provides live streaming video of FOX
Sports content, instant scores, stats and alerts to iOS and Android
devices. Additionally, FOX Sports and social broadcasting platform,
Caffeine jointly own Caffeine Studios which creates exclusive
eSports, sports and live entertainment content. Also included in
FOX Sports' portfolio are FOX's interests in joint-venture
businesses Big Ten Network and BTN 2Go, as well as a licensing
agreement that established the FOX Sports Radio Network.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements and
information within the meaning of the Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities laws,
including statements and information relating to the partnership
between The Stars Group and FOX Sports and rights and obligations
related thereto, particularly with respect to the development of
certain products as well as the purchase of The Stars Group common
shares by Fox Corporation. Words such as "may," "will," "should,"
"likely," "anticipates," "expects," "intends," "plans," "projects,"
"believes," "estimates," "outlook" and similar expressions are used
to identify these forward-looking statements. These statements are
based on management's current expectations and beliefs and are
subject to uncertainty and changes in circumstances. Actual results
may vary materially from those expressed or implied by the
statements in this news release due to changes in economic,
business, competitive, technological, strategic and/or regulatory
factors and other factors affecting the operation of the businesses
of The Stars Group and FOX Sports. More detailed information
about these factors is contained in The Stars Group's annual
information form for the year ended December
31, 2018, including under the heading "Risk Factors and
Uncertainties," available on SEDAR at www.sedar.com, EDGAR at
www.sec.gov and The Stars Group's website at www.starsgroup.com,
and in other filings that The Stars Group has made and may make in
the future with applicable securities authorities in the future,
and in the documents Fox Corporation has filed with or furnished to
the Securities and Exchange Commission (the "SEC"), including its
Registration Statement on Form 10, filed with the SEC and declared
effective by the SEC on February 5,
2019, and subsequent Quarterly Reports on Form 10-Q.
Investors are cautioned not to put undue reliance on forward
looking statements or information. Statements and information in
this news release speak only as of the date they were made, and
neither The Stars Group nor FOX Sports undertakes any duty to
update or release any revisions to any forward-looking statement
made in this news release or to report any events or circumstances
after the date of this news release or to reflect the occurrence of
unanticipated events or to conform such statements and information
to actual results or changes in expectations, except as required by
law.
View original
content:http://www.prnewswire.com/news-releases/the-stars-group-and-fox-sports-announce-historic-us-media-and-sports-wagering-partnership-300846763.html
SOURCE The Stars Group Inc.