Fox invests $100 million in broadcasting platform Caffeine

The flag of the Twenty-First Century Fox Inc is seen waving at the company headquarters in the Manhattan borough in New York June 11, 2015. REUTERS/Eduardo Munoz/File Photo

Twenty First Century Fox said on Wednesday it made a $100 million investment in social broadcasting platform Caffeine.

Stakes in Caffeine and a newly formed venture, Caffeine Studios, will be part of the proposed new “Fox” after the Disney deal, the company said in a statement.

Fox is in the process of selling the bulk of its film and television assets to Walt Disney Co in a $71 billion deal, which is expected to close in the first half of 2019.

The investment is part of Fox’s strategy to focus on news and live sports after the deal. Caffeine Studios will focus on creating e-sports, video game, sports and live entertainment content for the broadcasting platform, Fox said.

Existing Caffeine investors, venture capital firms Andreessen Horowitz and Greylock Partners and other undisclosed partners also took part in the funding round. The amounts of the additional investments were not disclosed.

The media company said its Executive Chairman Lachlan Murdoch will join Caffeine’s board.

(This story corrects to show the $100 million investment solely came from Fox)

Reuters.com