Lagardère will make an initial payment of $125 million for the share of capital and voting rights, to be followed by a further $25 million in three years time, contingent upon “cash flow performance criteria”.
Lagardère said that the current WSG management will stay in place.
WSG is the leading player in the Asian football television rights market, which accounted for a large part of its $146 million revenues in 2007. Its other shareholders are Sheikh Kamel, owner of Middle East pay-television broadcasterb ART, who has a 20 per cent stake, and Japanese agency Dentsu, which owns 10 per cent.
A Lagardère press release said the acquisition offered the group “access to the fast-growing Asian football market, with unchallenged market leadership in the region; development of its leadership position in the world football rights industry; expansion of the footprint and better reach for Lagardère Sports’ strategic partners (rights holders and sports governing bodies); a move into the cricket market via Twenty20, a format with very substantial growth potential.”
Printer-friendly version