Montreal, August 3, 2018 – Stingray Digital Group Inc. (TSX: RAY. A; RAY. B.), a leading business-to-business multiplatform music and video solutions provider, today announced that it has made an unsolicited offer to purchase all of the issued and outstanding units of Music Choice, a general partnership which produces music programming and music-related content for digital cable television, mobile phone and cable modem users.
The offer was presented to Music Choice’s management and communicated to each of the unitholders which include Charter Communications, Comcast, Cox Communications, Sony Corporation of America, WarnerMedia, Arris, and Microsoft.
Stingray confirms a purchase price of US$120M and vendor-friendly terms and conditions (including limited representations, warranties, and indemnities) to facilitate and expedite acceptance of the offer, execution of definitive legal documentation, and consummation of the proposed transaction.
The offer, which remains open for acceptance until August 31, 2018, has not yet been accepted and is currently under review by the unitholders. No assurance can be given that the offer, as presented, will be accepted by all or any of the unitholders.
“We believe that our formal offer to purchase has strong merit and would bring a significant return on investment for Music Choice unitholders,” said Eric Boyko, President, Co-founder, and CEO of Stingray. “Music Choice would benefit greatly from joining forces with Stingray, given that we are well positioned to expand and build Music Choice’s product portfolio and distribution in the United States and around the world. We look forward to bringing this process to a positive conclusion for the benefit Music Choice unitholders and all stakeholders."
Stingray (TSX: RAY.A; RAY.B) is the world-leading provider of multiplatform music and video services as well as digital experiences for pay TV operators, commercial establishments, OTT providers, mobile operators, consumers, and more. Its services include audio television channels, premium television channels, 4K UHD television channels, karaoke products, digital signage, in-store music, and music apps, Stingray reaches 400 million subscribers (or users) in 156 countries and its mobile apps have been downloaded over 90 million times. Stingray is headquartered in Montreal and currently has close to 400 employees worldwide. For more information: www.stingray.com.
This news release may contain “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking information includes information with respect to Stingray’s goals, beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, and “continue”, or the negative of these terms and similar terminology, including references to assumptions. Please note, however, that not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Stingray’s control. These risks and uncertainties could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in Stingray’s Annual Information Form (AIF) dated June 8, 2017, which is available on SEDAR at www.sedar.com. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that Stingray anticipates will be realized or, even if substantially realized, that they will have the expected consequences or effects on Stingray’s business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and Stingray does not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.
For more information, please contact:
Senior Vice-President, Marketing and Communications
1 514-664-1244, ext. 2362