Better Collective expands digital sports media presence with acquisition of Playmaker HQ
In a strategic move aimed at solidifying its position as the leading digital sports media group, Better Collective has announced the acquisition of Playmaker HQ for a total consideration of up to 54 million USD, with an upfront payment of 15 million USD. The regulatory release, marked as No. 30/2023, signifies Better Collective’s commitment to expanding its efforts in social media and sports content production.
About Playmaker HQ
Playmaker HQ, headquartered in South Florida, is a renowned sports and entertainment media platform specializing in original content creation and distribution. With a primary focus on the US market, the company collaborates with athletes and creators to provide engaging sports and entertainment content.
Through platforms such as Instagram, TikTok, Twitter, Snapchat, and YouTube, Playmaker HQ delivers over two thousand monthly pieces of sports content, attracting a growing audience of more than 20 million followers. Notably, their reach extends to over 500 million users each month.
The company has also established partnerships with prominent brands in the sports apparel and fast-moving consumer goods industries, earning recognition and accolades, including the prestigious Hashtag Sports’ “Top Snapchat Show” and four film festival awards.
The acquisition holds great synergistic potential for Better Collective. By incorporating Playmaker HQ’s large audience of highly engaged generalist sports fans, Better Collective aims to enhance its value proposition to existing partners and expand its reach beyond the core sports betting audience.
Playmaker HQ’s expertise in sponsorship sales will further bolster Better Collective’s ability to monetize audiences in diverse segments. Additionally, Better Collective plans to leverage Playmaker HQ’s content and know-how to extend its international presence, capitalizing on its global portfolio.
Playmaker HQ is experiencing rapid growth and anticipates generating revenue exceeding 10 million USD in 2023, with an EBITDA-margin of 20-25%. To ensure continued growth, the deal structure includes an earn-out component. Better Collective will pay up to 54 million USD in total, including an upfront cash consideration of 15 million USD, 1 million USD in deferred payments, and performance-based earnout payments of up to 38 million USD over three years.
For the earn-out payment to be fulfilled, Playmaker HQ must achieve more than 75 million USD in accumulated revenues and more than 25 million USD in accumulated operational earnings (EBITDA) during the first three years following the acquisition.
The transaction will be treated as an asset purchase, allowing Better Collective to benefit from potential tax deductions related to the acquisition price. Cash will be the primary method of funding the transaction, with the option to pay a portion of the earn-out in Better Collective shares.
Better Collective plans to consolidate Playmaker HQ into its accounts starting from July 3, 2023, while maintaining its 2023 financial targets unchanged.
Better Collective is extending its presence
Marc Pedersen, CEO of Better Collective North America, expressed excitement about the acquisition: “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 of Playmaker HQ, hailed the partnership as a significant milestone for the company: “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. I know our creators are going to do amazing things with the support of Better Collective’s team and resources. We are just scratching the surface, and we are so excited to align with Better Collective to help achieve OUR vision of building the world’s leading sports media group.”
The acquisition of Playmaker HQ marks another significant step forward for Better Collective as it continues to expand its digital sports media presence and consolidate its position as an industry leader.