Mobile Streams agrees to increase stake in Capital Media Sports
By Josh White
Date: Thursday 20 Mar 2025
(Sharecast News) - Mobile Streams announced an agreement on Thursday to increase its ownership in Capital Media Sports (CMS), the parent company of the Estadio media brand, with a potential path to acquiring a controlling stake.
The AIM-traded firm, which currently holds a 10% interest in CMS following an initial investment in December 2023, said it would immediately acquire an additional 12.5% for $0.375m, bringing its stake to 22.5%.
It also secured a call option to purchase a further 67.5%, which, if exercised, would raise its total holding to 90%.
The remaining 10% would be retained by Capital Media.
Under the terms of the agreement, CMS was valued at $3m for the initial 12.5% acquisition and $5m for the optional additional stake.
The latter would be settled in Mobile Streams shares, priced at the company's closing market value as of 28 March.
Payment for the 12.5% purchase would be made in three installments by 30 August, funded from the firm's existing cash reserves.
CMS also holds an 18.08% stake in the Mexican betting company Bet, in which Mobile Streams already owns 25.87%.
The increased stake in CMS would raise Mobile Stream's indirect holding in Bet to 29.94%, with the potential to reach 42.12% if the call option was exercised.
Mobile Streams said it saw the increased ownership of Estadio as a key strategic move, given the media brand's strong growth since its relaunch last year and its role in supporting its investment in the soon-to-launch Mexican betting platform.
The deal also reinforced MOS's partnership with Capital Media Group, with both companies exploring further collaboration.
Mobile Streams said the agreement remained subject to final documentation and any necessary regulatory approvals.
The vendors, Capital Media and Framarvic, had agreed to a one-year lock-in for 85% of their consideration shares should Mobile Streams proceed with the full acquisition.
"We are extremely pleased to have agreed terms to increase our investment with the option of taking control of Capital Media Sports and through it the Estadio media brand," said chief executive officer Mark Epstein.
"We have big plans to grow both the brand and the betting business, and this deal gives us this opportunity whilst we continue to work very closely with our partners at Capital Media."
At 1119 GMT, shares in Mobile Streams were down 1.66% at 0.5p.
Reporting by Josh White for Sharecast.com.
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