Shares in Arena Group Holdings, owner of Sports Illustrated, were up 12% premarket after revealing it has sold a majority stake to billionaire Manoj Bhargava's Simplify Inventions.
The deal entails Simplify acquiring a 65% stake in Arena, injecting $50 million cash, and pledging a $60 million ad commitment over five years.
Simplify's subsidiary, Bridge Media Networks, will integrate into Arena, and Simplify will receive $25 million of Arena's preferred stock.
The capital infusion will primarily address Arena's debt.
Bhargava, the force behind 5-Hour Energy, recently bought ShopHQ's parent, iMedia Brands. The deal is set to conclude by the end of the year.
At 7.47 am, the shares were up 42 cents at $3.80.