The Arena Group announced that its largest shareholder, Simplify Inventions, LLC, is increasing its investment by providing an additional $12 million in equity at an 85% premium over the company’s closing stock price on February 13. This is intended to help sustain the company during its transformation.
This new $12 million funding will raise Simplify’s equity stake to 54.5% of The Arena Group. This equity investment demonstrates Mr. Bhargava’s full faith in the continuing operations of The Arena Group and helps restore the confidence of its shareholders and customers.
The Arena Group continues working with Authentic Brands Group, the licensor of Sports Illustrated, to negotiate a new publishing license. And there is an unresolved claim of $45 million against The Arena Group by Authentic. The Arena Group will continue publishing the print and digital editions of Sports Illustrated until this issue is resolved.
The proposed merger between Bridge Media Networks and The Arena Group would form a new company The Arena Group Holdings. The merger will accelerate the company’s planned expansion to a highly differentiated digital media portfolio that can create, distribute and monetize premium video content across television, digital and streaming. And this unlocks significant revenue opportunities and will appeal to advertising partners as The Arena Group will be able to offer bespoke and integrated marketing opportunities.
KEY QUOTE:
“This infusion of cash is needed to help The Arena Group transition to a profitable, multi-media business. The news of our demise is a little early. We’re not going anywhere.”
- Manoj Bhargava
