Better Collective, a leading sports betting media group, is strengthening its presence in social media and sports content production through the acquisition of Playmaker HQ. The deal, valued at up to 54 million, with an upfront payment of 15 million, signifies Better Collective’s commitment to expanding its capabilities in these areas.
This strategic move allows Better Collective to enhance its social media engagement and deliver high-quality sports content to its audience. The acquisition aligns with Better Collective’s goal of providing comprehensive and engaging experiences for sports bettors and enthusiasts.
Playmaker Sports Accounts
Playmaker HQ, an influential player in sports content distribution, has established a strong presence on popular social media platforms like Instagram, TikTok, Twitter, Snapchat, and YouTube. With a remarkable following of over 20 million followers, Playmaker HQ’s content reaches an impressive 500 million users every month.
The company’s exponential growth is evident from its follower count, which has more than tripled since 2020. Through strategic partnerships with renowned brands in sports apparel and fast-moving consumer goods, Playmaker HQ has solidified its position in the industry. The company’s dedication to quality has been recognized with multiple awards, including the prestigious “Top Snapchat Show” accolade from Hashtag Sports and four film festival awards.
This comes at a time when sports betting and media continue to grow across athletics.
Playmaker Acquired by Better Collective
Playmaker HQ is poised for impressive growth, aiming to achieve a revenue of over 10 million USD in 2023, accompanied by a strong EBITDA margin ranging from 20% to 25%. To ensure sustained growth, the deal between Better Collective and Playmaker HQ includes an earn-out component.
As part of the agreement, Better Collective will make a cash and debt-free payment of up to 54 million USD. This includes an upfront cash consideration of 15 million USD, with an additional 1 million USD in deferred payments. Furthermore, up to 38 million USD in performance-based earnout payments will be made over three years.
To qualify for the full earn-out payment, Playmaker HQ must achieve a minimum of 75 million USD in accumulating revenues and 25 million USD in accumulating operational earnings (EBITDA) within the first three years after the acquisition.
The acquisition will be structured as an asset purchase, providing Better Collective with potential tax deductions related to the acquisition price. The transaction will be funded through cash, with the option to pay a portion of the earn-out in Better Collective shares.
