XLMedia Prioritizes Share Buyback and Cost Reduction After Asset Sales

XLMedia Repositions as a Cash-Rich Company

Instead, XLMedia is set to launch a share buyback program in the New Year, potentially worth up to £16 million (approximately $20 million). This amount represents around half of XLMedia’s current market capitalization and its anticipated available cash after accounting for costs and liabilities.

The management’s immediate focus remains on reducing operational costs while managing transitional service agreements related to the asset sales. This includes a rapid downsizing of the workforce to streamline operations.

Settlement costs, including deferred minimum guaranteed payments, tax obligations, transitional support agreements, and group closure costs, are estimated to range between $11 million and $13 million.

In pursuit of further efficiency, XLMedia is also reassessing its leadership structure to ensure cost-effective management while maintaining operational oversight.

Details of the North American Asset Sale

XLMedia’s North American asset portfolio, including well-known domains such as Crossing Broad, SportsBettingDime, EliteSportsNY, and SaturdayDownSouth, was sold to Sportradar for up to $30 million.

The sale decision was driven by XLMedia’s difficulty competing in the U.S. market due to its comparatively smaller scale. The board recognized that transferring these assets to a larger industry player, like Sportradar, would provide better opportunities for long-term growth.

For XLMedia shareholders, the good news lies in the planned initial distribution of proceeds from these sales, expected to take place by the end of the year. This move signals the company’s commitment to returning value to its investors while transitioning to a leaner and more focused operational model.