XLMedia is forecasting as much as $13 million (approximately £10.2 million) in redundancy payouts as it plans to close operations following the sale of its North American division to Sportradar.
The AIM-listed company updated investors by confirming its transition to a cash shell entity. There are currently no intentions to engage in acquisitions that would qualify as reverse takeovers.
In alignment with its strategy to return value to shareholders, XLMedia will offer £16 million early next year in an initial tender, amounting to about half of the company’s present market capitalization and approximately half of the potential cash remaining after covering transaction-related expenses.
This decision follows the company’s sale of its European and Canadian brands to the Gambling.com Group and the subsequent sale of its US affiliate brands to Sportradar.
By the end of November, XLMedia secured $20 million in proceeds from these deals. An additional $7.5 million is anticipated in April 2025 from Gambling.com Group.
XLMedia plans to monitor the performance of these sold assets closely as it evaluates the projected earn-out payments, potentially reaching up to $5 million by late Q1 2025.
The company is also reviewing its board structure to focus on cost reductions post-asset sales. Final tax obligations are yet to be finalized, but redundancy expenditures are predicted to range between $11 million and $13 million.
The firm detailed, “The group anticipates expenses to resolve liabilities, including deferred payments, settling worldwide taxes, supporting transitional services, and the overall closing of operations, encompassing redundancy payments.”
Marcus Rich, XLMedia’s independent non-executive chair, stated, “The board aims to maximize shareholder value while ensuring an orderly closure of the group’s activities. We are reviewing board structure to oversee the efficient winding down process.”
This information originally appeared in the article “Redundancy costs could hit $13m for XLMedia as part of wind down” on EGR Intel.