Digital sports media group Better Collective is acquiring Playmaker HQ, a Florida-based sports and entertainment media platform. The transaction, valued at $54 million, strengthens Better Collective’s social media presence and content production, and broadens its reach in the sports media industry.
Playmaker HQ is known for its distribution of sports content across various social media platforms, reaching a monthly audience of 500 million users. In order to acquire it, Better Collective is making an upfront payment of $15 million, with an additional $1 million in deferred payments. Performance-based payments of up to $38 million may also be paid over the next three years, contingent on Playmaker HQ’s revenue and EBITDA targets.
To reach the full earn-out payments, Playmaker HQ will have to generate more than $75 million in accumulating revenues and over $25 million in earnings before interest, tax, depreciation and amortisation (EBITDA) during the first three years post-acquisition.
Marc Pedersen, CEO of Better Collective North America, expressed enthusiasm about the acquisition, stating: “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.”
Pedersen also emphasized the company’s commitment to enhancing the sports betting experience for these fans while also being able to utilize Playmaker HQ’s know-how “to scale the product and revenue stream across Better Collective’s global portfolio.”
The consolidation of Playmaker HQ into Better Collective’s accounts will take effect immediately, as the company aims to leverage Playmaker HQ’s large audience of highly engaged sports fans. The acquisition enables Better Collective to enhance its value proposition to operator partners and monetize audiences beyond its core sports betting demographic.
Playmaker HQ’s extensive sports sponsorships and social media presence, with over 20 million followers and significant growth over the past three years, are also set to provide promising opportunities for both companies, the parties said in a press release.
Brandon Harris, CEO of Playmaker HQ, stated: “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.”
Harris expressed excitement about the future collaborations between the two companies and their shared vision of building “the world’s leading sports media group.”
While Playmaker HQ only operates in the North American market, Better Collective’s expansion in the Americas goes beyond this market. The company recently appointed Terence Gargantini as its new Country Director for Brazil, demonstrating its commitment to growing its presence in the region.
Original article: https://www.yogonet.com/international/news/2023/07/04/67775-better-collective-bolster-us-social-media-presence-by-acquiring-playmaker-hq-for-54-million
