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Net Element previously acquired 80% of Motorsport.com's shares a year ago in February 2011. Three of the four original Motorsport.com shareholders will continue to support Net Element on a consulting basis.
"This transaction is significant not only because the original shareholders accepted stock rather than cash, for the remaining 20% of Motorsport.com, but I believe it also conveys a message of confidence and a continued business partnership among all parties involved," said Dmitry Kozko, co-founder and executive vice president of business development with NETE.
Eric Gilbert, co-founder of Motorsport.com, added: "Net Element's leadership during the past year has helped transform Motorsport.com into a technology innovator adept at creating new interactive online experiences while increasing our overall presence, influence and market share in the motorsports industry. We have full confidence that Net Element will continue to grow what we started and our shareholders collectively demonstrate this belief by accepting stock in our parent company instead of a large cash buy out."
During the past year of partnership and business collaboration, Motorsport.com has developed 3-D technologies that will change the way fans follow races in live online environments while interacting with other motorsports enthusiasts, and advertisers will have a new platform to target audiences. The digital destination has created new verticals that cater to specific racing niches, signed Hall of Fame racing legend Emerson Fittipaldi as its chairman, and worked with Ferrari North America to use Motorsport.com to help reach Ferrari fans. Additional gains and growth of Motorsport.com during the past year include:
- Launching a series of social media contests with Fittipaldi, including "Are You the #1 Emmo Fan?"
- Sponsoring the Ferrari Challenge
- Developing one of the largest professional online library of motorsports photos, which is comprised of more than 1.5 million images and a video archive that exceeds one thousand viewable hours
- By special invite from YouTube, Motorsport.com created and produced three seasons of the exclusive YouTube show, "The Golden Age of Motorsport"
- Signing distribution deals with Fast Lane Daily and other popular video content owners, as well as syndication to TiVO and other IPTV destinations
- Releasing a motorsports-only UGC platform for fans to upload and share content
"Net Element has immediate plans to continue developing Motorsport.com’s advisory board and advancing the progress on all its related products, including live, 3-D capabilities, as well as mobile extensions," Kozko said. "We’re glad that our users have been receptive to the proposed platform upgrades and continue to support our product evolutions. We are seeing user growth trends and are confident that they will continue as we launch new campaigns and product features."
Motorsport.com provides interactive multi-media experiences of race series through one of the largest professional online library of motorsports photos, as well as HD video, race results, locations, race team profiles and other unique race content, which helps fans stay engaged round-the-clock with their favorite racers and provides a vehicle for the world’s top brands to reach motorsports fans.
Motorsport.com, Inc., a Net Element (OTCQB:NETE) business division, is a digital distribution platform that provides, via its website and social media networks, interactive multi-media coverage and experiences of F1, NASCAR, Le Mans and other major race series through one of the largest professional online library of motorsports photos, as well as HD video, race results, locations, race team profiles and other unique content. For more information, visit www.Motorsport.com.
About Net Element
Net Element is a global publisher of online destinations and business services on a custom technology platform for Internet and mobile distribution. This platform enables the rapid development, production and distribution of rich media content (HD & 3D), services (SaaS) and branded content in entertainment and news. NETE owns and publishes Internet properties and creates social and business communities in motorsports, music, film and entertainment. Its portfolio includes: www.Motorsport.com; www.Openfilm.com; www.Music1.com; www.Yapik.com and www.ARLive.com. For more information, visit www.NetElement.com.
Legal Disclaimer: Forward-Looking Statements - Issues, Uncertainties and Risk Factors
This press release contains forward-looking statements. When used in this press release, the words "continue", "continued", "believe", "plans", "will", "advancing", "progress", "proposed" and similar expressions, if and to the extent used, are intended to identify forward-looking statements. All forward-looking statements are based largely on current expectations and beliefs concerning future events or conditions that are subject to substantial risks and uncertainties. Actual results may differ materially from the results herein suggested. Factors that may cause or contribute to the potential differences include, but are not limited to, (i) Net Element's ability to implement plans and initiatives to grow its website user base (including the users of its Motorsport.com website and its other websites), (ii) changes in Motorsport's market share of motorsports industry websites, (iii) Net Element's ability to create and successfully implement mobile extensions and other campaigns and product features, (iv) Net Element's ability to timely implement enhancements to the technologies used on its websites, (v) Net Element's ability to obtain and retain distribution deals for video content and (vi) Net Element's ability to retain the services of members of its advisory board members and obtain additional advisory board members who have potential to add value to Net Element's website and technology offerings.
Nicole Kasak or Tyler Sminkey, 305-403-2080, Ext. 110 or Ext. 114