The online video consolidation trend continues this week with Toronto’s JumpTV merging with New York based NeuLion. JumpTV is an ethnic and sports online video service and NeuLion is a start-up that sells a new online to TV streaming-video technology.
Rafat Ali of PaidContent reported yesterday that the 50/50 deal will include publically traded JumpTV (TSE: JTV) to issue about 50 million shares (worth around $40 million) to NeuLion as part of the transaction, which is expected to close by October.
This merger means the new company will focus on sports programming, as well as ethnic programming for Hispanic, Chinese, Filipino and Arabic speaking audiences worldwide. NeuLion founder and CEO Nancy Li will serve as CEO of the merged company. Li’s husband, Charles Wang – of Computer Associates and New York Islanders fame – will serve as chairman of the merged company. Jordan Banks (ex-Managing Director or eBay Canada) continues as CEO of JumpTV in the interim.