SportsLine.com, Inc. announced that it has modified its relationship with America Online (AOL) by terminating its existing agreement with AOL and entering into a new agreement. Under the terms of the new agreement, SportsLine.com will no longer receive promotion from AOL, but SportsLine.com will continue to provide certain programming services for the AOL Sports Channel for up to the next 13 months. Also, SportsLine.com will provide fantasy sports game products to America Online on a private label basis, including fantasy games relating to professional football, baseball, basketball, hockey, golf and auto racing.
In connection with the termination of the existing agreement, America Online will refund to SportsLine.com approximately 1.7 million shares of common stock, which will be retired and cancelled. In addition, SportsLine.com has been relieved from its obligation in 2003 to pay an additional $1,000,000 in cash and/or stock to AOL.
“We've enjoyed a long, mutually successful relationship with AOL,” said Michael Levy, founder and CEO for SportsLine.com. “The billions of impressions we received from AOL over the years were significant in helping us to achieve our objectives of building sustainable traffic for CBS SportsLine.com and to create a great brand that is recognizable virtually everywhere. These transactions will enable SportsLine.com to redirect its marketing efforts in light of the Company's increased focus on promoting its subscription products.”
SportsLine.com began its relationship with AOL in July 1997, when CBS SportsLine.com became an anchor tenant in the AOL Sports Channel. SportsLine.com and AOL continue to be part of four-way partnership, along with CBS and the National Football League, which encompasses wide-ranging technology-based media initiatives, including SportsLine.com's production and hosting of NFL.com and SuperBowl.com.
