Churchill Downs Inc. (NASDAQ: CHDN) and Youbet.com (NASDAQ: UBET) announced today that the outside date for termination of their merger agreement providing for the acquisition of Youbet by CDI has been automatically extended, in accordance with the terms of the merger agreement, from May 11, 2010 to February 11, 2011, in order to grant the parties additional time to satisfy the mutual condition to closing, relating to the expiration or termination of any applicable waiting period.
On Nov. 11, 2009, CDI and Youbet announced their proposed merger by which CDI would acquire all of the outstanding shares of Youbet, in a transaction valued at approximately $126.8 million based on the Nov. 10, 2009 closing price of CDI common stock. On January 25, 2010, the Antitrust Division of the United States Department of Justice issued to CDI and Youbet formal requests for additional information and documentary material. These requests had the effect of extending the waiting period until 30 days after both parties have substantially complied with the requests, subject to any modifications of the requests to which the DOJ may agree. No other regulatory approvals are a condition to the completion of the merger. Although no assurances can be given as to the timing for the closing of the merger, both companies continue to expect the merger to close in the second quarter of 2010.
CDI, headquartered in Louisville, Ky., owns and operates four Thoroughbred racing facilities: Arlington Park in Illinois, Calder Casino and Race Course in Florida, Churchill Downs Race Track in Kentucky, and Fair Grounds Race Course & Slots in Louisiana. CDI operates slot and gaming operations in Louisiana and Florida. CDI also owns off-track betting facilities, TwinSpires.com, and other advance-deposit wagering channels, television production, telecommunications, and racing service companies such as BRIS and a 50-percent interest in the national cable and satellite network, HorseRacing TV, which supports CDI’s network of simulcasting and racing operations.
