Rogers Communications has struck an agreement to buy sports broadcaster Score Media in a transaction valued at $167 million.
The purchase price includes assumption of Score Media debt and an investment of $12 million in Score Digital which will be spun out to its existing shareholders.
Shares of Score Media jumped nearly 47 per cent Friday after reports that the specialty TV sports broadcaster was in discussions to be purchased by Rogers.
Score Media has been reportedly shopping its assets for about a year, with some reports suggesting chief executive John Levy was hoping to sell for $200 million.
"This deal allows us to continue to pursue our vision and strategy that have formed a huge part of what we've been doing at Score Media for some time," Levy said in a statement. "We can now focus 100 per cent on our digital products, building on the tremendous strides we have made in growing the international audience of our website and mobile apps."
The Score runs third place among rival Canadian sports channels TSN and Rogers Sportsnet. Once the deal receives regulatory approvals, the television network would be rebranded under the Sportsnet umbrella.
Rogers said in a statement Saturday that the acquisition of Score Media does not include its digital media business, including theScore.com website and mobile applications.
Immediately prior to the acquisition, Score Media's digital assets will be spun out to its existing shareholders, with Rogers Media retaining a 10 per cent equity interest in the digital media business. Rogers Media will also have access to Score Media's digital technology to immediately enhance its mobile offerings.