Scout Media is acquired by Fox division

Seattle-based Scout Media Inc., which operates a network of more than 200 sports Web sites and 47-team specific magazines, is being acquired in a multimillion-dollar deal by News Corp.'s newly formed Internet division.

ADDITIONAL COVERAGE

Read more about Fox's acquisition of Scout Media in the Venture Voice blog.

Terms were not disclosed, though Scout Media Chief Executive Jim Heckman said it was "a substantial win for my investors."

The acquisition comes as News Corp. -- which created its Fox Interactive Media division last month -- pushes hard into new online businesses. Last month, News Corp. paid $580 million in cash to buy Intermix Media -- operator of the popular MySpace.com social networking site.

Scout Media, which attracts about 2.4 million users a month to its network of niche sports sites, including Dawgman.com, eDuck Sports and Bucknuts, will be combined with FoxSports.com to create more in-depth coverage of college and professional sports. More than 200,000 people pay $9.95 a month to subscribe to Scout. com's Web sites, which provide in-depth recruiting news, injury reports and other insider information from more than 200 freelance journalists.

As a part of FoxSports.com, Scout will receive marketing muscle, video footage, statistical information and sports reporting expertise, Heckman said. He said Fox is a perfect partner because of its network of regional sports television channels that have exclusive access to sports content.

Combining the video from Fox stations such as Fox Sports Northwest with Scout.com's insider information will create a powerful combination, he said.

"It is no accident that we matched up with Fox, they are the perfect partner," Heckman said, adding that he has been in discussions with the company for several months. "When you take our huge number of reporters and communities and in-depth player reports and then bring in the resources that Fox has -- team specific stats, videos, broadcast rights and marketing capabilities -- you can imagine the power that is giving what was previously a little startup company."

In a statement, Fox Interactive Media President Ross Levinsohn said the partnership will create the "deepest, most sweeping sports coverage on the Web."

The acquisition is a win for Heckman, who co-founded Scout in 2001 shortly after his previous online sports company -- the high-flying Rivals.com -- was sold in a liquidation sale to a Brentwood, Tenn., group.

The rivalry between Scout.com and Rivals.com has been heated in the past couple of years with the companies fighting over sports writers and distribution agreements. Heckman said the acquisition by Fox, whose FoxSports.com Web site attracts 11.2 million visitors a month, should give Scout the leg up on the competition.

"I don' think there is any deal that they can do to match this," Heckman said. "It just doesn't exist." Rivals.com general manager Bobby Burton could not be reached for comment last night.

No layoffs are planned at the 25-person company and Scout.com will remain in Seattle. Heckman -- who started his sports publishing career in 1987 after dropping out of the University of Washington -- said he has signed a multiyear employment agreement with Fox.

"This certainly validates a dream I have had for more than 10 years," Heckman said. "Having your idea validated by the most powerful media company in the world and being a target of their acquisition plan is very exciting."

Other Scout executives, including Patrick Crumb and Glenn Nelson, will stay with the company, Heckman said. Scout recently raised $6 million in venture capital financing.

P-I reporter John Cook can be reached at 206-448-8075 or johncook@seattlepi.com.

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