In-hotel gaming channel sells to venture capital firm

Tuesday, Jan. 14, 2003 | 11:09 a.m.

The Players Network, which operates a 24-hour digital gaming and entertainment cable television channel broadcast into hotel and casino guestrooms, has entered an agreement to sell a controlling interest to KO Ventures LLC.

Las Vegas-based Players Network's board of directors approved the offer of $4.5 million in cash for 13.6 million shares of common stock at a price of 33 cents per share. KO Ventures will have an option to purchase up to 10 million additional shares at a price of 50 cents a share during the first year.

The full investment of $4.5 million by KO will be made in increments between January and August 2003.

KO Ventures is a Northern California venture capital company that invests in technology businesses, real estate and healthcare facilities. KO Ventures could not be reached and Players Network declined to reveal details about the company.

In July Players Network announced a deal to sell to Northfield Inc. of Toronto for $4.16 million, or 32 cents per share. Players Network terminated the agreement because the sale took longer than expected.

"We wanted to (sell but) they didn't meet certain terms and conditions for the sale, Players Network President Mark Bradley said.

KO Ventures' investment will allow the company to move ahead with plans to launch an international, in-home channel on the gaming industry, Bradley said.

"I think it's going to be very good for Las Vegas and the gaming industry."