TVG gets OK to buy Youbet stock

Shareholders of Youbet.com, the computer-based horserace broadcast and wagering company, approved a previously disclosed plan on Thursday to allow rival Television Games Network to purchase 51 percent of the company.

Under the plan, TVG could purchase 51 percent of Youbet's outstanding common stock at a price of $2.50 a share at any time during the next 36 months. The exercise price represents a significant premium over Youbet's current share price, which settled at $1.12 on Friday.

TVG and Youbet reached an agreement this summer which allows Youbet to accept wagers on racetrack signals that were previously carried exclusively by TVG.

The announcement of the agreement sent Youbet's stock price past $1, which allowed Youbet to retain its listing on NASDAQ.

TVG and Youbet have both fallen short of their projections for revenues and subscribers. Under the agreement, TVG will retain nearly all of the revenue from bets made by Youbet subscribers on its exclusive tracks, while Youbet hopes to attract more subscribers with its expanded menu of tracks.