A strong second quarter isn’t enough to prevent a dive in the shares of NeuLion (NeuLion Stock Quote, Chart, News: TSX:NLN) today after rumours surfaced about a partnership that may shut the company out.
12:04 PST Update. NeuLion has been halted, pending news…
Multiple reports have the NHL signing a $1.2-billion deal that will see Major League Baseball partnering with the National Hockey League on a digital streaming deal that will result in MLB taking control of the GameCenter Live product.
Yahoo Sports’s Chris Cwik says later today Major League Baseball will announce a wide ranging deal that will see the NHL get a chunk of cash and a seven to ten per cent interest in MLB Advanced Media.
NeuLion has provided the GameCenter Live product, which delivers live out of market hockey games on television and mobile devices, for several years.
But CBS Sports hockey writer Chris Peters says that while the current product has been improved it still suffers from “long delays and other general clunkiness” which has “frustrated users”.
In Toronto, shares of NeuLion are taking it on the chin, down 38.2% to $0.94 at press time. The company today reported second quarter results that saw its revenue rise 69%, year-over-year, to $22.7-million.
Founded in 2004, Neulion is based in Plainview, New York and has offices in Vancouver and Toronto. The company has partnered with the NHL, NBA, and NFL, as well as more minor organizations such as The Big Ten Network and the Ontario Hockey League.