Toronto-based JumpTV has signed an agreement to merge with U.S.-based NeuLion, an end-to-end IPTV service that serves live and on-demand sports and religious programming over the web and through set-top boxes. The merger is expected around Oct. 1.

The deal comes after the rejection of another offer, which came from MySpace founder Brad Greenspan, to combine JumpTV and LiveTime Group, which operates the social entertainment group of sites LiveVideo Network. Greenspan’s Internet holding company, LiveUniverse, attracts more than 50 million unique visitors to 35 websites.

Greenspan’s offer included a $7-million contribution over five years toward online promotion, but was rejected by the JumpTV board of directors.

JumpTV reports that ‘the company’s interests and its shareholders’ interests were best served by continuing its negotiations with NeuLion.’

In the last 12 months, JumpTV streamed more than 15,000 live and exclusive sporting events. It also owns cycling.tv and sportsya.com. The company has also spent that time racking up deals to position itself as a leader in global online sports content.

From Media in Canada