Global Sports gets another $40 million investment
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.
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