Chrysalis Group and 365 Corporation are to merge their internet content business into a newly-created company in order to cut costs and move closer to profitability, the two groups have announced this morning.
Chrysalis operates the Rivals.net sports content website and 365 Corp produces a number of sports-related sites such as Football365 and Cricket365. The groups say that the merger will create the leading European company in this field.
The move comes only days after Chrysalis’ year-end financial results which showed profits dented by £9.4 million following new media write-offs by the group. Pre-tax profits, which the year before stood at £0.9 million, fell to a loss of £16.8 million this time (see Strong Radio Performance Aids Chrysalis Results).
Chrysalis and 365 Corp will each hold a 40% stake in the new company, with the remaining 20% controlled by its management. The two companies are to provide operating funds for the new group for the next eighteen months, after which they have no obligation to make further investments.
