SportsLine gains after forming European venture

Sportsline USA Inc. (Nasdaq: SPLN) rose 8 1/4 to 39 1/8 on Tuesday after the company agreed to buy Sportsweb.com from Reuters Group Plc. (Nasdaq: RTRSY) to create the foundation for the company's European unit. Terms of the deal were not disclosed.

The Internet sports media company will own 80 percent of SportsLine Europe, which is set to launch this summer. Intel Corp. (Nasdaq: INTC), Media One Group Inc.'s (NYSE: UMG) Ventures division and Reuters will own portions of the remaining stake in the unit.

The European unit, to be based in London, will concentrate on popular European sports, such as soccer, rugby and cricket with plans to establish news bureaus across Europe to cover events.

"Now, with the investment support of Intel, MediaOne Ventures and Reuters, we have an opportunity to extend the SportsLine brand around the world by launching a family of European sports Web sites with a local focus," said SportsLine CEO Michael Levy in a statement.

Media One, which agreed to be acquired by AT&T Corp. (NYSE: T), owns a 7 percent stake in SportsLine. CBS Corp. (NYSE: CBS) owns 21 percent of the company and buyout firm Kleiner Perkins holds a 10 percent interest in the media company.