Better Collective Bests DraftKings, FanDuel in a $ 240 million deal for Action Network
Posted on May 3, 2021, 01:58 a.m.
Last update: May 3, 2021, 03:16 h.
Danish analytical service provider Better Collective buys The Action Network for $ 240 million in cash and capital, expanding the growing list of contracting between bookmakers and the media.
The Danish firm says the deal will help it increase U.S. revenues north of $ 100 million by 2022. Action Network based in New York $, which has around 100 employees, is expected to generate 40 million sales in 2021 $, doubling the year-on-year basis. Better Collective adds that it will release 30 million new shares to $ for Action's leadership, "key employees and some others." Completion of the transaction is planned for the current quarter.
Takeover Action better reinforces Better Collective's leadership in the affiliate and online sports betting industry, ”the buyer said in a statement. " Share will become an integral part of Better Collective US. "
As a result of the purchase, the Danish company now forecasts 2021 sales of $ 216.33 million USD with an operating profit of 66.1 million. Previously, a profit of $ 60 million was estimated from revenues of $ 192.3 million.
Better Collective Action Network Buy winners and losers
Last October, the research company Eilers & Krejcik Gaming (EKG) noticed Action Network was the target of the takeover - a forecast which of course did come true.
As with most consolidation efforts, especially those related to desirable gaming-related assets, there are winners and losers in this deal. Wall Street Journal reports FanDuel and DraftKings (NASDAQ: DKNG) - two of the largest online betting operators in the US - work with unnamed private equity firms in The Action Network .
It's speculation, but DraftKings recently made multiple deals to increase its media offering, a $ 50 million deal with Meadowlark Media last week and the acquisition of Vegas Sports Information Network (VSiN), announced in March.
As for the winners, the obvious is The Chernin Group (TCG), a Californian investment firm that specializes in media firms. TCG is the controlling investor in The Action Network . This is TCG's second hit in a combination of sports betting and media coverage. TCG was an investor in David Portnoy's Barstool Sports before Penn National Gaming (NASDAQ: PENN) acquired a stake in the company last year.
Some experts are convinced that the concept of partnerships and direct acquisitions between the media and sports betting operators is at an early stage of development. Even more of the same is coming up as gaming companies are looking for new ways to gain customers and media organizations are trying to take advantage of the sports betting boom.
These deals could ultimately bear fruit, as some analysts see $ 30 billion in revenue from iGaming, sports betting, and media combinations by 2030.
As for Better Collective, a company largely unknown to regular US players, is gaining a platform to attract more customers in the fast-growing US market. The operator says online sports betting revenues in the US should reach $ 4 billion next year before rising to $ 40 billion in 2033.