Showtime Looking To Acquire ProElite Inc.

Showtime Networks is making moves, including filing with the SEC(Securities and Exchange Commision), to begin formal negotiations aimed at acquiring ProElite Inc, the parent company for EliteXC, King of the Cage, Cage Rage and ICON Sports.

The only surprise is who’s looking to buy ProElite, as most MMA insiders assumed that a major infusion of cash was required in order to make the company(which has lost in excess of $55 million in 2 years) profitable. CBS Corp owns Showtime, and already owns a reported 20 % of Pro Elite.

Initially ProElite Inc was looking for an infusion of cash around the $3 million mark, but in the end a deal was struck with Showtime, where Showtime would “lend” the company $1 million.

Here’s the filing quote:

“The Company no longer believes that a successful closing of the $3.5 million secured debt (with a funded amount of $3.0 million) will occur. “Although the Company has received $1 million pursuant to the Note, such funds are less than the $3.0 million needed to avoid the consequences described in the preceding paragraph and in the Company’s prior reports filed with the Securities and Exchange Commission. The $1 million funding defers such consequences only for a brief period of time while the Company continues to evaluate its options on how to respond to its severe liquidity problem.”

Showtime failed to return any calls, but look for an official statement soon. Showtime Networks is making moves, including filing with the SEC(Securities and Exchange Commision), to begin formal negotiations aimed at acquiring ProElite Inc, the parent company for EliteXC, King of the Cage, Cage Rage and ICON Sports. The only surprise is who’s looking to buy ProElite, as most MMA insiders assumed that a major infusion [...]

Try These Related Topics