OpenSports Closes Round; FoxSports’ 20 Percent Stake Priced At $6 Million
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OpenSports, the online fantasy sports startup founded by Sportsline founder Mike Levy, has closed its $4 million second round of funding, as well as issued $6 million worth of options to FoxSports, according to a new SEC filing this afternoon. The new money is on top of the $10 million it raised last year from these private investors such as E-Trade CEO Christos Cotsakos and former Office Depot Chair & CEO David Fuente. As a refresher, we reported earlier that FoxSports.com is now out of FIM, and part of Fox Sports under David Hill. Hill is also now a board member at OpenSports.
SEE ALSO: FoxSports.com Post-FIM: Takes Stake in OpenSports; Revamp Planned
I spoke to Levy today, and he said the new money was mostly from previous investors, and some new money came in from other new private investors. The FoxSports stake, at about 20 percent in options, includes a deal where the company will build out fantasy games for FoxSports.com, with a rev-share component. The first two games have already been launched. The FoxSports.com fantasy deal is structured similar to how CBS worked with his previous company Sportsline back in the day, before it outright bought the site. Interesting side fact: levy went to Fox Sports first with the idea of Sportsline, in mid 90s, but they passed and then CBS took it up.
For now, the focus on the company will be working with Fox Sports, but Levy said they do have some plans for their own consumer presence through OpenSports.com. He also hopes that with FoxSports, they could end up working with NFL in the future, and maybe even MLB down the line.
Posted In: Entertainment, Sports, Money, M&A & Venture Capital, Venture Capital, Companies, News Corp., Fox, opensports
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