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Better Collective, a leading sports betting affiliate, has completed the acquisition of American sports media company Playmaker HQ for $54 million. The deal includes an upfront cash payment of $15 million, $1 million in deferred payments, and potential earnout payments of up to $38 million based on performance over a three-year period.
To receive the full earnout payments, Playmaker HQ must generate more than $75 million in accumulated revenues and over $25 million in earnings before interest, tax, depreciation, and amortization (EBITDA) during the first three years post-acquisition.
Playmaker HQ, headquartered in South Florida, specializes in creating original sports and entertainment content, with a focus on collaborations with athletes and creator talent targeting the US market.
Better Collective sees the acquisition as an opportunity to access a new and large audience of highly engaged generalist sports fans. It also plans to leverage Playmaker HQ's expertise in sponsorship sales to monetize audiences beyond the sports betting realm. The acquisition will expand Playmaker HQ's reach to a global scale with the additional resources provided by Better Collective.
Marc Pedersen, CEO of Better Collective North America, expressed excitement about the acquisition, noting that Playmaker HQ will introduce millions of new sports fans to Better Collective's user base. Pedersen also emphasized the potential to enhance the sports betting experience for these fans and leverage Playmaker HQ's knowledge to expand product offerings and revenue streams across Better Collective's global portfolio.
Brandon Harris, CEO of Playmaker HQ, described the acquisition as a significant milestone for the company. Harris expressed enthusiasm about collaborating with Better Collective's team and resources to create compelling content, experiences, and opportunities for a wider global audience of sports fans. He further emphasized the alignment between Playmaker HQ and Better Collective in their vision of building the world's leading sports media group.