Mr. John Levy reports
THESCORE ACQUIRES 'MOBILE FIRST' DAILY FANTASY SPORTS GAME 'SWOOPT'
theScore Inc. has closed a deal to acquire the daily fantasy sports game, Swoopt, from San Francisco-based ApptheGame Inc.
The acquisition provides theScore, which has 9.2 million average monthly
active users on its mobile platforms, with a strategic entry point into
the daily fantasy sports space. The deal includes Swoopt's mobile
application and Web offering, and the four members of its San
Francisco-based product development and leadership team. Deal
consideration included a combination of cash and Class A subordinate
voting shares of theScore.
"Like theScore, Swoopt was created as a mobile-first product, and this
deal equips us to enter the exciting daily fantasy sports market," said
John Levy, founder and chief executive officer of theScore.
"Swoopt's approach to daily fantasy sports, featuring mobile-friendly
contests that can be joined and managed quickly and easily, made this a
great opportunity -- especially with daily fantasy enjoying a clear fit
with sports fans using theScore's mobile platforms."
Swoopt offers a range of daily fantasy sports contests for professional
baseball, hockey, football, basketball and college football. ApptheGame
developed the Swoopt game with venture financing from Douglas Bergeron,
Tandem Capital, i/o Ventures, Sand Hill Angels and other investors.
ApptheGame chief executive officer Matthew Himelstein said, "theScore is a leader in
developing mobile sports experiences, and this deal provides Swoopt with
the expertise and resources required to take our game to the next
level."
Following the acquisition, Swoopt will continue to operate as usual. The
four members of the Swoopt team join theScore with immediate effect and
will continue to operate out of San Francisco, working in tandem with
theScore's Toronto-based team to enhance and build upon the Swoopt
experience.
Fantasy sports is played by more than 41.5 million people in the United
States and Canada, and more than two-thirds access games via their
mobile devices, with daily fantasy a popular category within this
growing market.
As part of the deal, theScore also announced the grant of a total of 550,000 options to the Swoopt team members joining theScore. Each
option is exercisable for one Class A subordinate voting share of
theScore at an exercise price of 38 cents, vests over three years and has
a term of 10 years. Each option is exercisable in accordance with the
terms and conditions of the company's stock option plan.
We seek Safe Harbor.
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