Time Inc. has acquired three youth-focused digital sports companies and an events business, as the publisher looks to place bets on growing areas of media and reduce its dependence on print advertising and circulation revenue.
The company has purchased SportsSignup and LeagueAthletics.com, which provide online management tools to youth sports leagues that enable parents, coaches and players to check information such as team schedules and statistics. The two businesses serve about 8 million athletes, 300,000 teams and 8,500 leagues, Time Inc. said.
The third sports company Time Inc. acquired, iScore Sports, sells apps priced at $9.99 each for fans of baseball, football, basketball and soccer. The apps enable users to create a digital scorecard and track games play-by-play, as they unfold.
Time Inc. will roll the sports firms into a new unit called Sports Illustrated Play. “We hope to integrate the three companies so that they’ll work collaboratively,” said Jeff Karp, a veteran gaming executive who has been hired as chief executive of Sports Illustrated Play. “We’ll also talk to consumers, coaches, and players to see what new features we want to scale over time.”
The largest U.S. magazine publisher has also purchased inVNT LLC, a New York-based live events business that currently organizes an estimated 200 events with consumers. The idea is that it could host conferences and other live events built around the content from top Time Inc. titles.
Time Inc. did not disclose how much it spent on the four acquisitions. The deals come as the company is trying to offset the decline of its traditional print business by increasing its digital footprint and venturing into new markets that expand on the power of its well-known magazine titles. The sports deals will help the company reach a new audience and collect data that could potentially be valuable to advertisers.
“This is about creating an opportunity in youth sports,” said Joe Ripp, Time Inc.’s CEO, in an interview. “If you’re a parent you can understand how strong the passion is for youth sports.”
Time Inc.’s advertising and circulation revenue fell 9% and 7%, respectively, in the most recent quarter ended March 31. Excluding results from Time Inc.’s former relationship with CNNMoney and the sale of a Mexican magazine group, advertising and circulation revenue each fell 5%.
Mr. Ripp already was making steps in this direction before the latest round of deals. In May, Time Inc. acquired blogging community FanSided LLC and has since integrated FanSided’s local sports content across its various Sports Illustrated websites.
Digital sports has become a hot area for media companies. Time Warner Inc., for example, owns sports news website Bleacher Report. Elsewhere, Comcast Corp.’s venture arm has invested in online fantasy sports business FanDuel Inc.
In early February Time Inc. U.K. purchased U.K. Cycling Events to flank its group of bicycle-related magazines that include Cycling Fitness and Cycle Sport.
Senior executives at SportsSignup and LeagueAthletics.com confirmed the sale but declined further comment. Brett Law, CEO and co-founder of iScore Sports said in an interview that the sale “gives us the resources to do the kind of things we’ve wanted to do for years.” Mr. Law said he intends to stay with the company.
Mr. Karp will report to a board of six senior Time Inc. executives that includes Mr. Ripp and Time Inc. Chief Financial Officer Jeff Bairstow. Although Paul Fichtenbaum, editor of the Sports Illustrated group and Brendan Ripp, group publisher, are also on the board, Sports Illustrated Play will operate independently.
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