Better Collective is to boost its presence on social media and in sports content by acquiring sports and entertainment media platform Playmaker HQ for US$54m.
The deal will see $15m paid up front for the South Florida-based platform, which distributes content on Instagram, TikTok, Twitter, Snapchat and YouTube.
Better Collective says the move will add to its legacy audience of sports betting enthusiasts and will bring a new and large audience of generalist sports fans to Better Collective’s partners.
Playmaker HQ, which is currently only active in North America, is targeting full-year 2023 revenue of over $10m with an EBITDA margin of between 20 per cent and 25 per cent.
Better Collective will also pay $1m in deferred payments and up to $38m in performance-based earnout payments over a three-year period, included in the deal because of Playmaker’s recent growth.
Playmaker HQ will have to generate over $75m in revenue and over $25m in operational earnings during its first three years post-acquisition to trigger the full earnout payment.
Marc Pedersen, CEO of Better Collective North America, said: “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 at Playmaker HQ, added the deal will help the company “create amazing content, experiences and opportunities,” and reach an “even wider audience of sports fans globally.”
