In November 2023, Better Collective, a prominent affiliate in the gaming industry, announced its agreement to acquire Playmaker Capital for a total sum of €176 million (£151 million/$192 million).
The transaction had been slated for closure in the first quarter of 2024. Subsequently, with resounding support from Playmaker Capital’s shareholders, the deal has inched closer to its anticipated fruition.
Astoundingly, an overwhelming 99.999% of all votes cast were in favor of the acquisition, with a mere 0.001% opposed.
Nonetheless, the acquisition still awaits approval from the Ontario Superior Court of Justice and the Canadian Minister of Heritage, along with meeting various additional closing conditions.
If all these prerequisites are met, the acquisition is poised to conclude in early February.
The strategic rationale behind Better Collective’s acquisition of Playmaker Capital revolves around its ambition to become the market leader in South America, while simultaneously strengthening its presence in the North American market.
Better Collective foresees benefits in terms of enhanced scale and increased investments in product development, technology, and marketing.
Playmaker Capital, with its sports media brands including Futbolsites.net, Yardbarker, and The Nation Network, is listed on both the TSX Venture Exchange in Canada and the OTCQX in the US.
Better Collective will assume ownership of these assets as part of the acquisition agreement.
In terms of financing the purchase, Better Collective is opting for a combination of 65% in shares and 35% in cash.
The group intends to revisit its financial targets for the period spanning from 2023 to 2027 following the successful completion of the acquisition.
Playmaker Capital’s co-founder and CEO, Jordan Gnat, remarked that this deal has been a year in the making.
Meanwhile, Better Collective’s co-founder and CEO, Jesper Søgaard, hailed the acquisition as an “important milestone” in the group’s journey within the digital sports media landscape.
This move to acquire Playmaker Capital follows Better Collective’s acquisition of American sports media company Playmaker HQ for $54 million in July of the previous year.
Based in Florida, Playmaker HQ specializes in generating original entertainment and sports content, targeting the US market.
Better Collective saw this acquisition as a strategic opportunity to tap into a new and extensive audience of highly engaged generalist sports enthusiasts.
With these strategic acquisitions, Better Collective is poised to expand its portfolio and strengthen its position in the dynamic world of digital sports media.