Gemstar to Acquire Stake in Youbet.Com
Gemstar-TV Guide International Inc. agreed to give Youbet.com Inc. access to the horse races broadcast on its television network in exchange for a stake in the online betting company and a portion of its sales.
Youbet.com gave Gemstar warrants to buy as much as 20% of its stock for one-tenth of a cent each. Pasadena-based Gemstar may get another warrant to buy as much as 51% of Youbet.com for $2.50 a share, Youbet.com said.
Gemstar’s TVG Network lets viewers bet on horse races through their TV sets or computers, and Youbet.com provides online wagering services for thoroughbred and harness horse races. The accord expands Youbet.com’s network to 81 racetracks in 39 states.
Shares of Woodland Hills-based Youbet.com rose 61 cents, or 81%, to close at $1.36, while Gemstar jumped $3.73, or 9.5%, to close at $42.95, both on Nasdaq.
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