365 and Chrysalis set for online merger

Internet and telecoms company 365 Corp said it would merge its online activities with the Internet arm of media company Chrysalis Group to create a sports Internet joint venture.

The two groups will split off their Internet businesses into a new vehicle in a move designed to cut costs and increase chances of profitability.

"The Board of 365 believes that the formation of Newco with Chrysalis represents the best opportunity to create Europe's leading sports internet business," Martin Turner, chief executive of 365, said in a statement.

365 owns the popular Football365 Web site, while Chrysalis owns Rivals.net, an independent network of sites run by sports fans.

The merged business will provide its three million plus users with access to its broad, fan-based network.Chrysalis and 365 will both retain significant but non-controlling minority interests of 40 percent. The new company's management will hold a 20 percent stake, the statement said.