- Syntonic has signed two memorandums of understanding (MOU) with Fox Latin America Channel LLC
- The MOU concerns the right for Syntonic to distribute and sell the Fox Gol mobile content
- The Fox Gol application enables Mexican and Brazilian soccer fans to follow their favourite teams, watch videos, and access other content
Mobile services provider Syntonic has signed two memorandums of understanding (MOUs) with Fox Latin America Channel LLC.
The MOU concerns the right to distribute and sell Fox Gol mobile content via Syntonic’s revenue generation platform (RGP).
The MOUs’ initial term is sixty days from execution with an automatic renewal of an additional sixty days. However, this will only come into effect if the definitive agreements have not been executed during the initial period.
Fox Sports has the option to terminate the MOU if Syntonic fails to offer the Fox Sports offering to at least two major mobile operations in Brazil and Mexico.
It can also be terminated if Syntonic fails to provide its services at minimum services levels.
This first MOU provides Syntonic with the rights in Brazil with the second covering Mexico.
Both Syntonic and Fox Sports have committed to complete definitive agreements within 120-days in each new signing.
The agreements require Syntonic to share a fixed percentage of the revenue generated from the sales of Fox Gol, billing charges, media marketing, and operating expenses.
The Fox Gol application enables Mexican and Brazilian soccer fans to follow their favourite teams and leagues through a subscription package. This will give them access to video and other curated content.
The Brazilian service currently has approximately 700,000 active users and 200,000 subscribers paying up to BRL 4.99 (A$1.75) weekly.
Syntonic and Fox will used Syntonic’s RGP to significantly grow active users in both markets.
Transfer of the Fox Gol services to the Syntonic platform is expected to occur in the second quarter of the 2020 financial year following an implementation period.
Syntonic remains in a voluntary suspension today which it entered on September 10, 2019. Shares are priced at 0.2 cents apiece in a market cap of $3.472 million.