Sara Fischer’s Post

Just after finalizing its acquisition of Playmaker Capital, Better Collective published its unaudited full-year report. The company said that 2023 was a very strong year and that the results exceeded its guidance. According to the company’s announcement, its full-year revenues reached EUR 327 million ($352.5 million), which represents a 21% year-on-year growth. EBITDA, on the other hand, increased by 31% to EUR 111 million ($119.7 million). The latter figure was within the high end of Better Collective’s guidance, while revenue exceeded previous estimates. In addition, Better Collective reported net debt to EBITDA before special items below 2.0, in line with its target. The digital sports media group described 2023 as a very strong year as it allowed it to surpass its financial targets. Throughout the year, the company had to update its guidance two times thanks to strong operational performance and accretive acquisitions. Read the full article ➡ https://lnkd.in/dyY9V4ss #business #finance #gambling #gamblingnews #global

“35 Years of Thanks” [Post 5: Mitzi Reaugh] Startups that achieve success get the attention of larger companies exploring acquisitions, but it’s rare when a pre-revenue company with merely a prototype gets acquired. That was my experience in 2001 – not long after the dot-com bubble burst and forced companies like StreamSearch to cease operations – and how I crossed paths with Mitzi Reaugh. When I met two former securities attorneys (Thomas Bruck and Brett Cravatt) with an idea for an entirely new category of fantasy sports products, I was impressed by the concept and jumped on board. As a team of three, we revised the business plan for the company, known as SportSkill, and I suggested pivoting to a licensing model. I drafted a proposal for us to pitch, and to our surprise, the first presentation led to our company being acquired by an idealab venture, later rebranded as Vendare Media. Vendare offered performance-based online media and marketing solutions and saw the value in SportSkill’s daily and weekly fantasy sports games. This was when only season-long games were available as it was several years before DraftKings and FanDuel would launch and the DFS market would explode. We were just a bit too early. At our new offices in Pasadena I enjoyed working with teammates Adam Slotnick and Mark Bond at what was now “JackpotSports” and members of Vendare’s team: David Smith, Karen Nugent, Laura Sanders, Max de Brouwer, Siran Agadjanian, and Mitzi, among others. I was immediately impressed by Mitzi’s willingness to teach us the nuances of Vendare’s business, coupled with her curiosity to learn as much as possible about ours. There was not much in common other than we were all motivated to grow audiences, but she always went out of her way to offer updates or answer any questions about projects that might benefit their new sports division. Mitzi was early in her career, but it was evident to me she would be a star at whatever she chose to do. When navigating subsequent mergers in my career, I thought about Mitzi and how important it is for an organization to have committed employees like her with a cheerful and positive attitude about whatever new challenges or tasks might be presented. I did not stay long post-acquisition and would soon become immersed in the nacent world of mobile entertainment. I valued this experience where I was able to negotiate unique deals with The Sporting News, FOXSports, and professional sports leagues, and I loved one-of-a-kind opportunities like spending a day in Monterey with our baseball spokesperson, Reggie Jackson. This was also how I met Heather’s mom, Becky, a fantasy football expert writing for FOXSports, ESPN, and her own site ChicksonFootball.com, so I am grateful to SportSkill for my amazing daughter, Heather Jensen. I am also grateful to have worked with Mitzi and share my thanks and wishes for her continued success! 

As a former member of #TeamCNET, I send congratulations to Mark Larkin and the entire team at CNET for working hard to make the deal happen. Congratulations to Vivek Shah and #TeamZD on what is clearly a signiifcant opportunity with CNET in the ZD portfolio. If Vivek's "clear, optimistic" content perspective checks out, there's a reason this is one of 2024's biggest acquisitions so far. CNET is already set up to feature products and has a solid (and loyal) audience profile. While we're currently seeing a very challenging marketplace, I see plenty of monetization opportunities at this intersection. #Acquisition #Publishers #Deal #Media

Better Collective announced that it has completed the acquisition of Playmaker Capital, a Toronto-based digital sports media group. This is notably Better Collective’s second-largest acquisition to date. The deal saw Better Collective acquire all of Playmaker Capital’s issued shares for a consideration of CAD 0.70 per share. Better Collective covered this deal both in cash and Better Collective shares. Following the completion, Playmaker Capital’s common shares are set to be delisted from the TSX Venture Exchange. In addition, the acquired company will apply to cease to be a reporting issuer. Read the full article ➡ https://lnkd.in/dn5W3gt8 #business #gambling #gamblingnews #finance #mergersandacquisitions

Founders: Did you know it's entirely possible to build a half-a-BILLION dollar company and sell it...for nothing? I'm not a sports guy and therefore not a sports betting guy. So when FanDuel sold for nearly half-a-billion dollars I paid little attention. Until yesterday... I came across an article explaining how the founders of FanDuel sold their company for half a unicorn — 𝘢𝘯𝘥 𝘸𝘢𝘭𝘬𝘦𝘥 𝘢𝘸𝘢𝘺 𝘸𝘪𝘵𝘩 𝘯𝘰𝘵𝘩𝘪𝘯𝘨. How? Through a combination of liquidation preference and drag along rights. Here's a break down: 💡 𝗟𝗶𝗾𝘂𝗶𝗱𝗮𝘁𝗶𝗼𝗻 𝗣𝗿𝗲𝗳𝗲𝗿𝗲𝗻𝗰𝗲: These terms in your term sheet define how much your investors get paid — before anyone else — in the event of an exit. The Preference Multiple in an investor's liquidation preference determines how many times their investment the investor receives (again, first). For example: A $5MM investor with a 2x preference multiple will stand at the front of the line and receive $10MM of the total exit. In the case of FanDuel, the structure of early term sheets meant that investors were in line to receive the first $559MM of any exit. 🤯 💡 𝗗𝗿𝗮𝗴-𝗔𝗹𝗼𝗻𝗴 𝗥𝗶𝗴𝗵𝘁𝘀: This was the second contributing factor in the FanDuel acquisition. The same early investors were granted drag-along rights meaning that they held enough control in the event of an acquisition offer that they could "drag along" other investors and shareholders against their will. Including the founders themselves. 💀 So, when FanDuel sold to Paddy Power Betfair for $465MM in 2018, the early investors utilized their drag-along rights to force the sale through, capturing ALL of the cash from the acquisition and leaving the founders and other shareholders with nothing. LESSON TO ENTREPRENEURS: Pay close attention to, and make sure you completely understand your term sheets before signing them. #acquisition #entrepreneurship #termsheets

Thrilled to be featured in ADWEEK’s recent article on the ad tech M&A landscape. The past 18 months have been a whirlwind – high inflation, rising interest rates, and global uncertainty put a damper on liquidity. M&A activity slowed, and fundraising became a challenge. However, I see the current chess moves as a prelude to consolidation. This will unlock cash flow and pave the way for more strategic M&A deals in the near future. Expect to see some “average” deals this year, but the market is resetting for a stronger 2025. Get ready for solid returns and a more dynamic ad tech landscape next year. Thanks to Catherine Perloff! https://lnkd.in/dg7PQ6eU #adtech #investing

Ziff Davis is buying CNET for just $100 million https://ift.tt/6QacyAf Image: CNET Red Ventures is selling CNET to Ziff Davis, the digital media and internet company that owns other notable tech publications like Mashable, IGN, and Lifehacker. Ziff Davis’s chief executive, Vivek Shah, confirmed the acquisition to The New York Times on Tuesday. Ironically, back in 2000 it was CNET Networks Inc that paid $1.6 billion to acquire the then tech-publishing behemoth Ziff-Davis Inc and its online services company ZDNet. Though so much has happened in the last two decades in the form of divestments and realignments that today’s inverted purchase isn’t as ouroboric as it might seem. In 2020, Red Ventures acquired CNET along with a few other smaller properties for $500 million. While an official figure hasn’t been announced, Ziff Davis reportedly paid “more than $100 million for CNET” according to the NYT’s sources — a fraction of the $1.8 billion it was valued at when CBS acquired the company in 2008. In January, Axios reported that Red Ventures was shopping CNET around for a buyer. CNET has struggled with its image of late. Investigations by The Verge and Futurism in 2023 found that the website was using generative AI to produce some of its articles. Turmoil and layoffs followed but that hasn’t dissuaded Ziff Davis from the purchase. According to The New York Times, Shah wants CNET because it’s a “well-known industry brand” and still has an audience that’s large enough to be attractive to tech advertisers. “I have a very clear and optimistic view on content,” said Shah. The executive makes no mention of how AI might factor into CNET’s future publishing strategy. Business News via The Verge https://ift.tt/bUmDFXJ August 6, 2024 at 05:19AM

The greatest acquisitions of all time 1️⃣ Acquisition of Marvel by Disney The acquisition of Marvel Entertainment by The Walt Disney Company in 2009 was a significant event that brought together two major players in the entertainment industry. • Purchase price: $4.2 billion • Return: $13.3 billion 2️⃣ Acquisition of ESPN by Disney In 1996, Disney acquired the prominent sports network, granting them access to a wide range of sports content and broadcasting rights. • Purchase price: $188 million • Return: $26 billion 3️⃣ Acquisition of Google Maps by Google Google Maps was first released in 2005 as a web-based mapping service and has since become one of the most popular and widely used mapping platforms globally. • Purchase price: $70 million • Return: $27.9 billion 4️⃣ Acquisition of Paypal by eBay The acquisition of PayPal by eBay took place in July 2002 and marked a significant moment in the history of e-commerce and online payments. • Purchase price: $1.5 billion • Return: $45.6 billion 5️⃣ Acquisition of Booking by Priceline In 2005, Priceline Group Inc., now known as Booking Holdings Inc., acquired Booking. • Purchase price: $429 million • Return: $46.6 billion 6️⃣ Acquisition of Android by Google Google acquired Android Inc. in August 2005. At the time of the acquisition, Android Inc. was a small startup company based in California that was developing an operating system for mobile devices. • Purchase price: $50 million • Return: $112 billion 7️⃣ Acquisition of NeXT by Apple Apple's acquisition of NeXT Inc. took place in February 1997. NeXT Inc. was a computer company founded by Steve Jobs in 1985 after he left Apple in the mid-1980s. • Purchase price: $50 million • Return: $126 billion 8️⃣ Acquisition of Youtube by Google Google acquired YouTube in November 2006 for a purchase price of $1.65 billion in stock. At the time of the acquisition, YouTube was a rapidly growing video-sharing platform that allowed users to upload, share, and view videos online. • Purchase price: $1.65 billion • Return: $165 billion 9️⃣ Acquisition of Instagram by Meta Platforms (Facebook) Meta Platforms, formerly Facebook, acquired Instagram in April 2012 to expand its social media ecosystem and tap into Instagram's rapidly growing user base and visual-centric content sharing platform. • Purchase price: $1 billion • Return: $174.5 billion 🔟 Acquisition of DoubleClick by Google Google acquired DoubleClick in March 2008 to bolster its online advertising capabilities, leverage DoubleClick's ad-serving technology, and strengthen its position in the digital advertising market. • Purchase price: $3.1 billion • Return: $182 billion Source: 10KReader

Top list of acquisitions. We mostly hear about the bad ones in financial news but there are quite a few extraordinary acquisitions. Ironically in some cases like the purchase of Paypal or Booking the acquired companies became larger than the ones acquiring them. Youtube is another interesting case study as it started to bring considerable revenue to Google many years after the acquisition.

“MEG” investor Alignment Growth bought a minority stake in unscripted producer Wheelhouse. The M&A and talent growth plan is simple, and compelling. Let’s break it down… WHEELHOUSE OVERVIEW • Diversified prod and media co • Founded 2018 by unscripted vet Brent Montgomery • Brent previously founded Leftfield Ent, sold to ITV in 2014 for > $360M • Prod Co’s incl Spoke Studios, Campfire, Butternut, Wheelhouse UK, DNA • Prod Partnerships w/ Jimmy Kimmel's Kimmelot and Chef David Chang's Majordomo Media WHEELHOUSE DIVISIONS • Entertainment – Prod co comprised of 6 studios, focus on unscripted • Wheelhouse Labs – brand mktg services incl social strategy, branded content, IM • Wheelhouse DNA – digital arm incl podcasts, video strategy, talent mgmt co Additive Creative • Houses – 4 event spaces in NY / LA M&A + CAP MARKETS ACTIVITY • Initially financed by Brent in 2018 via earnings from ITV sale, est in mid 8 figures • Bought minority stake in branded content co Portal A in 2019 • AG investment is 1st outside funding round ALIGNMENT GROWTH • Growth stage investor in media & entertainment, gaming, and “MEG enablers” • Raised $360M in 2023 • Founded 2021 by Jeff Bewkes (former Time Warner CEO) and Kevin T (former Warner Bros CEO) • Adds ops / deal / strat experience to portfolio cos via Fortune 500 exec team experience • Investments incl fever, build a rocket boy, crunchbase, spyglass media INVESTMENT • Led by Alignment Growth • Minority stake, terms undisclosed • AG partner Jeff Bewkes joins Wheelhouse board • UOF: attract top industry talent, grow through M&A MY TAKEAWAYS... CEO Brent and his Wheelhouse team are some of the world’s best unscripted producers. They have much momentum w/ buyers (20 sold shows in 2023!), and see the chance to work with bigger talent names, more often. This would allow WH to sell even more shows at higher budgets. And to help increase their content throughput, they need more prod teams, and fast. To that end, there’s likely many production co’s who don’t have the buyer access that WH does, but have teams and capabilities that can be bought at good prices while the TV / streaming industries consolidate. And now WH has the funds to execute against this 2-pronged strategy, and quickly. If they can stay focused in this lane, I think they’ll do quite well. To the above point… My guess is 90% of profit comes from the sale of unscripted series to TV / streaming. Unclear if the other biz lines are breakeven and / or what their path to profitability is. Makes me wonder how much longer those other divisions will be resourced by Wheelhouse. Growth comes from ruthless focus. The real money here seems to be growing the unscripted production biz. Disclosures: I’ve hosted events at Wheelhouse spaces, and have advised Portal A on various projects. -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, creator economy. My DMs are open. #media #agency #creatoreconomy