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Global Sports gets another $40 million investment
Online sporting goods operator Global Sports gets $40 million from QVC and Comcast Corp. and says second quarter sales will be greater than expected while losses will be lower than expected.
King of Prussia, PA-based Global Sports Inc. has received a $40 million investment from a joint venture of Comcast Corp. and QVC Inc. The Comcast/QVC joint venture has agreed to purchase 4 million shares of common stock, including 3 million new shares from the company and 1 million shares from Chairman, President and CEO Michael Rubin at $10 per share.
This is the second round of investment from these companies and gives them a bigger stake in the business. The joint venture gives Comcast and QVC 25.8% of outstanding stock. Investment funds affiliated with Softbank Holdings Inc. will have 24.8% of shares and Rubin will have 20.2% of shares. The remaining 29.2% of the company is owned by individual investors.
Global Sports, which now partners with 20 sporting goods companies to operate their e-commerce sites, also announced that it expects to exceed the average of analysts’ consensus expectations for the second quarter of 2001, including greater than expected sales and a smaller than expected pro forma net loss. With the new investment of $30 million, the company’s pro forma cash position at the end of the second quarter would have been $93.6 million.