NEULION, INC. T.NLN

Halted

[longsolo]

PLAINVIEW, N.Y., Dec. 19, 2017 (GLOBE NEWSWIRE) -- NeuLion, Inc. (NLN.TO), 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 (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.

[Insearchofvalue]

So they just sold approximately 45% of their revenue for 41 million?  

[SGGold]

I think it sets them up to be bought. Plain and simple.  DivX made a buy-out messy. Most suitors wouldn’t want it. IMO.

[lscfa]

.....purchase price 2x sales and costs to be substantially reduced.

[Insearchofvalue]

Actually 36 million in revenue for the nine months ending September 30, 2017, and that would include the UFC mess!  So I would say the purchase price is considerably less then sales if you considered 12 months of sales.  see below "Pursuant to the Purchase Agreement, NeuLion will sell certain DivX assets, intellectual property and subsidiaries to Fortress for cash consideration of

[Birdman99]

Try reading that again. Not 36m. For nine months. 20.7 for year end Dec 2016. And 15m so far for 9 months ending Sept. So roughly 20m again. Basically 2 years of sales. If they can actually bring operating costs down and do something good with the cash and not just burn through it in compensation or other poor purchases. But not holding my breath they didn't seem to be able to do anything

[longsolo]

zero debt, a amazing asset in the core business and almost 100 million in the bank.  I say thats good news.

[longsolo]

After this deal they will have about corrected number around 70 million positve net (no debt), which means it is 40% of its entire market cap.

[BerglinTurds]

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