Adding to Better Collective’s legacy audience of sports betting enthusiasts, the group gains access to a new and large audience of highly engaged generalist sports fans which subsequently increases the value offering to Better Collective’s existing partners.
Playmaker HQ holds extensive sponsorship sales know-how that will increase Better Collective’s ability to monetize audiences outside its core sports betting audience.
Currently, Playmaker HQ is only active in North America, and expects to be able to scale content and know-how internationally across the group’s global presence.
Better Collective will pay up to US$54 million on a cash and debt free basis, including an upfront cash consideration of US$15 million, US$1 million in deferred payments, and up to US$38 million in performance-based earnout payments over a three-year period.
The acquisition will be conducted as an asset purchase meaning that Better Collective expectedly will benefit from certain tax deductions related to the acquisition price. The transaction will be funded by cash, with optionality to pay some of the earn out in Better Collective shares.
Better Collective will consolidate Playmaker HQ into its accounts effective July 3, 2023. The group’s 2023 financial targets will remain unchanged.
Marc Pedersen, CEO Better Collective North America, commented: “We have been following Playmaker HQ for some time, and are excited to announce the transaction today. Playmaker HQ offers access to millions of sports fans in the US, the majority of which are new in the Better Collective user base. We are excited to help enhance these fans’ sports betting experience, while also being able to utilize Playmaker HQ’s know-how to scale the product and revenue stream across Better Collective’s global portfolio.”
Brandon Harris, CEO Playmaker HQ, added: “Joining forces with Better Collective marks a significant milestone for Playmaker HQ. We cannot wait to make plays with Better Collective's world class team who will help us create amazing content, experiences and opportunities, reaching an even wider audience of sports fans globally. I know our creators are going to do amazing things with the support of Better Collective's team and resources. We are just scratching the surface, and we are so excited to align with Better Collective to help achieve OUR vision of building the world's leading sports media group.”
Playmaker HQ is a leading sports and entertainment media platform headquartered in South Florida, US. The sports media group specializes in providing original entertainment and sports content with exclusive athlete collaborations and creator talent mainly targeting the US market.
Currently, Playmaker HQ distributes more than two thousand monthly pieces of sports content mainly on Instagram, TikTok, Twitter, Snapchat, and YouTube. The group has more than 20 million followers across these platforms, increasing from seven million in 2020. Monthly, the content reaches over 500 million users.
With a vision to become the leading digital sports media group, Better Collective owns and operates international and local sport communities and media that aim to make sports entertainment sustainably engaging and fun. Through its online media, the Group provides prime quality content, data insights, betting tips and educational tools for enthusiastic sports fans all over the world.
Source: GMB
