Riddell Signs Letter of Intent For Internet Joint Venture With Data Broadcasting Corporation and Dawntreader Fund I LLP
NEW YORK, Feb. 22 /PRNewswire/ -- Riddell Sports Inc. (Amex: RDL - news) announced today that it has signed a non-binding letter of intent to form RiddellSports.com, a joint venture to market the Company's brands on the world-wide web and provide timely and relevant content for the consumer communities that the Riddell, Varsity and Umbro brands reach. The Company will have two partners in the joint venture. The first is Data Broadcasting Corporation, which along with CBS, owns approximately 75% of MarketWatch.com, an Internet provider of financial services that recently completed an initial public offering. The other partner, Dawntreader Fund I LLP, is a venture capital fund formed by Robert Lessin, formerly a vice-chairman at Solomon, Smith Barney. Mr. Lessin is now chairman of Wit Capital Group, Inc.
The Dawntreader Fund specializes in investing and advising Internet related companies. Its focus is on early stage companies that are involved in e-commerce or services that promote the digital economy. Data Broadcasting Corporation is an incubator of early stage Internet companies and, in addition to its investment in RiddellSports.com, will provide strategic advice and other support for the new venture.
The proposed joint venture, which presently intends to market the Company's products on the Internet as well as develop and maintain various Internet-based communication and information links to its customers, is subject to the negotiation and completion of documentation acceptable to each of the joint venture participants. It is presently intended that Data Broadcasting and Dawntreader will provide the initial funding required by RiddellSports.com, subject to limitations to be agreed upon, and will also be responsible for implementing and operating the RiddellSports.com web site.
The letter of intent provides that Riddell Sports Inc. will own approximately 49% of RiddellSports.com upon formation. Under the proposed joint venture RiddellSports.com will initially have an exclusive, royalty-free license for all of Riddell Sports Inc.'s Internet activities and the right to use all of its current trademarks on the Internet..."
source: © Monday February 22, 7:30 am Eastern Time 1999 biz.yahoo.com
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