Better Collective has progressed in its pursuit of acquiring Playmaker Capital following approval from the latter’s shareholders. The affiliate giant had unveiled its intentions to acquire Playmaker Capital for a total consideration of €176 million ($192 million) back in November.
The approval from Playmaker Capital’s shareholders, with an overwhelming 99.999% of votes cast in favor, catapults the acquisition one step closer to realization.
The green light from Playmaker Capital’s shareholders is a crucial endorsement of the acquisition. The deal, which had been anticipated to conclude in the first quarter of 2024, now awaits approval from the Ontario Superior Court of Justice, the Minister of Canadian Heritage, and other requisite closing conditions.
Should all these conditions be satisfied, the acquisition could close in early February. Better Collective’s targeted acquisition positions the company to establish itself as a market leader in South America while strengthening its foothold in the competitive North American market.
The deal is also anticipated to bring about enhanced scale, increased investment in product development, technology, and marketing, consolidating Better Collective’s position in the dynamic digital sports media sector.
Playmaker Capital, with shares listed on the TSX Venture Exchange in Canada and the OTCQX in the US, boasts a diverse portfolio of sports media brands, including Futbolsites.net, Yardbarker, and The Nation Network. Better Collective will purchase all these assets as part of the acquisition deal.
The financing structure of the acquisition comprises 65% in shares and 35% in cash. The company has signaled its intent to revisit its financial targets for the period spanning 2023 to 2027 upon the successful completion of the Playmaker Capital acquisition.
Reflecting on the protracted journey leading to this crucial juncture, Jordan Gnat, Co-founder and CEO of Playmaker Capital, emphasized the year-long effort invested in realizing the acquisition. Jesper Søgaard, Co-founder and CEO of Better Collective, echoed this sentiment, branding the acquisition as an “important milestone” in the company’s digital sports media journey.
Jesper Søgaard, Co-founder and CEO of Better Collective
This strategic move to acquire Playmaker Capital follows Better Collective’s successful acquisition of American sports media company Playmaker HQ in July 2023 for $54 million. The Playmaker HQ acquisition was hailed as a tactical maneuver to tap into a new and extensive audience of highly engaged generalist sports fans in the US.
In August last year, Better Collective also announced the strategic acquisition of four flagship sports media brands from Everysport Group, including SvenskaFans.com, HockeySverige.se, Fotbolldirekt.se, and Innebandymagazinet.se with a combined reach of 9 million monthly visits from dedicated Swedish sports enthusiasts.
The acquisition is expected to significantly strengthen the company’s position in the European country. The acquisition came at a total cost of EUR3.7 million ($4 million), paid in three installments and funded through cash resources.
