July 23, 2001, 12:00 AM

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.

Kurt Peters

Executive Editor

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.

Comments

Sign In to Make a Comment

Comments are moderated by Internet Retailer and can be removed.

Not a member? Signup for free today!

Advertisement

Advertisement

Advertisement

Relevant Commentary

FPO

Jason Squardo / Mobile Commerce

Five tips for achieving high mobile search rankings

Searches on mobile devices will soon exceed those on computers, Google says. Retailers that keep ...

FPO

Sergio Pereira / B2B E-Commerce

Quill turns to its B2B customers for new ideas

Coming in April is a new section of Quill.com that will let customers and Quill ...

Advertisement