Toronto-based JumpTV has signed an agreement to merge with Plainview, NY-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 now expected to happen around October 1 of this year.

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

Greenspan’s offer for JumpTV included a $7 million contribution over five years toward online promotion. JumpTV’s board of directors held a special meeting to consider that offer, but rejected it after obtaining legal and financial advice.

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

In the last twelve months, JumpTV streamed more than 15,000 live and exclusive sporting events, including NCAA and Hispanic sports coverage. 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.