Better Collective to Purchase The Action Network

Earlier this month, a deal for the all-American news site, dealing with sports betting news, Action Network, resulted in the company being sold to Better Collective, a Danish sports wagering analytics provider. The purchase of The Action Network is going to cost Better Collective around $240 million, which will be paid in equity and cash before the end of the second quarter 2021. This announcement adds to the list of media outlets and wagering companies that have signed similar deals or have gone into partnership.

The Deal

The negotiated deal for the Action Network, news and analysis provider for the US sports wagering market, is for all of the company’s shares on a debt free and cash basis. Action Network launched its brand in 2018 and is projecting revenues that could reach $40 million for this year. This is a 100% increase from last year’s projections. The New York-based company has become a trusted voice for sports betting in the US and has even gone into partnership with some of the biggest sportsbook brands on the market today.

Once the deal has been completed, Action Network will be folded into the Better Collective Group. However, it will continue to operate as a separate unit with its current employees, management team and brands. Patrick Keane, the Chief Executive, will continue in the role. Denmark-based Bettor Collective, stated that this transaction will help the group boost it’s revenue to over $100 million by next year. This acquisition also further consolidates the Better Collective’s position in the customer delivery and affiliate verticals for online sports wagering. Action is set to become an integral part of Bettor Collective’s US division. The purchase announcement has led to the Danish company adjusting its financial forecast for 2021’s sales to around $216 million and operational profit of $66 million from the previous projected profit of $60 million on revenue of $192 million.

Those Who Won and Lost

Just last year,a trusted research firm indicated that the Action Network is a takeover target for many sports betting and affiliate companies. This projection came true with the announcement of the Better Collective purchase. Considering that The Action Network is a coveted gaming asset and there is consolidation activity, there are likely to be winners and losers. An inside source has revealed that two of the largest sportsbook brands in the US, DraftKings and FanDuel, and several other unidentified equity firms have made offers for the Action Network.
While there is no concrete evidence to prove this, DraftKings has recently announced several deals aimed at increasing it’s media presence. The newest deal involves Meadowlark Media while DraftKings has already secured the purchase of Vegas Sports Information Network. As far as winners go, The Chernin Group, which is a California-based investment firm that specializes in media companies, is definitely one. TCG is currently the controlling investor for the Action Network. The announcement of this purchase marks the second time that the TCG has made money with a media/sports betting combination. The first time was when the firm invested in David Portnoy’s Barstool Sports, which was later attached to Penn National Gaming.

More to Come

Experts believe that the concept of outright acquisitions and partnerships between sports betting operators and media firms is still in its infancy. Industry analysts have shared that they have reason to believe that more of the same deals are looming. This is a result of gaming companies that are looking for new customer acquisition streams and views the media industry as a way to get the most out of the sports betting boom. While the returns are not expected to be high right now, there will come a time when these deals bear greater fruit. Researchers and analysts have crunched the numbers and have shared that around $30 million in revenue will be yielded by media combinations, iGaming and sports betting by 2030. Bettor Collective, a brand that is generally unfamiliar with casual sports bettors in the US, will now have a platform to win over more customers in the competitive and dynamic US market. Bettor Collective has shared that online sports betting revenues are expected to reach around $4 billion next year and will continue growing 2033, and beyond, where it will reach $40 billion.