Better Collective Acquires Playmaker HQ, a Prominent American Sports Media Company
Better Collective, a leading player in the iGaming industry, has recently strengthened its social media presence and content production capabilities through the acquisition of Playmaker HQ, a renowned American sports media company. Playmaker HQ, headquartered in South Florida, specializes in providing original sports and entertainment content with exclusive athlete collaborations and creator talent, primarily targeting the US market.
With a distribution of over two thousand monthly pieces of sports content on platforms like Instagram, TikTok, Twitter, Snapchat, and YouTube, Playmaker HQ has amassed a following of more than 20 million users, showcasing significant growth from seven million in 2020. Its content reaches over 500 million users each month, making it a major player in the sports media landscape. Playmaker HQ has also formed partnerships with top brands in the sports apparel and fast-moving consumer goods industries and has received accolades such as Hashtag Sports’ “Top Snapchat Show” and multiple film festival awards.
The acquisition of Playmaker HQ by Better Collective offers several synergies and benefits. Better Collective gains access to a larger audience of highly engaged generalist sports fans, complementing its existing audience of sports betting enthusiasts. This expanded reach enhances the value offering to Better Collective’s partners. Additionally, Playmaker HQ’s expertise in sponsorship sales enhances Better Collective’s ability to monetize audiences beyond its core sports betting segment. With Playmaker HQ’s content production and distribution know-how, Better Collective can potentially scale internationally, leveraging its global presence.
Playmaker HQ, currently active in North America, aims to expand its content and expertise to other markets. The company has experienced rapid growth and targets full-year revenue exceeding US$10 million (£7.9 million/€9.2 million) in 2023, with an EBITDA-margin of 20-25%. To ensure continued growth, the acquisition agreement includes an earn-out component. Under the terms of the deal, Better Collective will pay up to $54 million, including an upfront cash consideration of $15 million, $1 million in deferred payments, and up to $38 million in performance-based earnout payments over a three-year period. The earnout payments are contingent upon Playmaker HQ generating cumulative revenues exceeding $75 million and operational earnings (EBITDA) exceeding $25 million during the first three years post-acquisition.
The acquisition will be conducted as an asset purchase, potentially providing Better Collective with certain tax deductions related to the acquisition price. The transaction will be primarily funded with cash, and there is flexibility to allocate a portion of the earnout payments in Better Collective shares.
Better Collective plans to consolidate Playmaker HQ into its accounts, effective from July 3, 2023. This strategic move aligns with Better Collective’s goal of expanding its social media presence and content production capabilities while diversifying its revenue streams beyond the core sports betting market. The acquisition marks a significant milestone for Better Collective and positions the company for further growth in the dynamic iGaming industry.
Marc Pedersen, CEO Better Collective North America: “We have been following Playmaker HQ for some time, and are excited to announce the transaction today. 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 Playmaker HQ: “Joining forces with Better Collective marks a significant milestone for Playmaker HQ. 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.”