YooMedia is preparing to sell its subsidiary The Gaming Channel to the Spanish-based investment company Kasei 2000. The Gaming Channel runs YooMedia’s fixed odds betting operation and has been valued at £5.25m (€7.20m). YooMedia is the second high-profile UK operator to withdraw from the fixed odds business; last November OpenTV announced it was disposing of the Betting Corp business acquired three years earlier.
YooMedia’s executive chairman Michael Sinclair confirmed the sale of The Gaming Channel. “YooMedia is in discussions with Kasei 2000 to explore opportunities for its interactive services in Spain and other Hispanic markets and this option agreement underlines Kasei 2000’s interest in the gaming sector in particular”. YooMedia has secured a five-year contract to provide technical support.
The transaction is expected to complete in October. An initial payment of £0.8 million is due in the next two months. In the year ending December 31, 2007, The Gaming Channel made a gross profit contribution of £2.3m.
