XLMedia provides distribution update to shareholders

The company is focused on minimizing costs while supporting the transitional services agreements for previous transactions, including a rapid reduction in staff numbers.

XLMedia has provided a distribution update for its shareholders while also announcing it will be undergoing an initial tender offer after selling off assets in two separate deals throughout 2024. The company stated it proposed undertaking an initial tender offer of up to $20m in 2025. 

After selling off its North American assets to Sportradar in November and completing a sale of its Canadian assets with Gambling.com Group in April 2024, XLMedia stated that it is eligible to receive payouts of up to $15m from both deals in April 2025. 

XLMedia continues to be focused on minimizing costs while supporting the transitional services agreements for both transactions, including a rapid reduction in staff numbers. The company estimates its costs to clear liabilities including deferred minimum guarantee payments and settling tax in each jurisdiction in which it operates to be in the order of $11-$13m.

Good to know: XLMedia published an update on its financial and business results for the first half of 2024 on July 30

The initial tender offer would represent approximately half of XLMedia’s current market capitalization and approximately half the potential total available cash. 

The Board of Directors is tracking performance of the assets in Europe and North America. While the Board stated it cannot be certain of the eventual level of earnout that will be achieved, it estimates that the amount would be approximately between $3-$4m, and possibly up to $5m.

Kirk Geller

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