Apollo Global Management (NYSE:APO) is reportedly holding early represent talks near coming together Yahoo! Sports with a sports wagering company.
CNBC reported the tidings before today, citing unidentified sources that say the buck private equity companion is discussing a possible transaction with Australia’s PointsBet (OTC:PBTHF). But neither Phoebus Apollo nor the gaming society commented on the matter.
Apollo and Yahoo! are considering coming together Yahoo Sports with an existing sports betting company, a go that could place up an eventual twisting turned of Yahoo! Sports,” CNBC reports, citing sources.
If a trade is consummated, the combined companionship would potential continue the Yahoo! name. Apollo acquired the internet seek provider, which also controls the pop Yahoo! Finance site, for $5 1000000000000 last twelvemonth from Verizon.
Over the past times brace of years, the private equity troupe was attached to multiple sports betting integration rumors, including William Hill, the Brits bookmaker’s international business, and media and sports wagering assets in Australia, among others. In tardily 2020, Apollo’s Gamenet Group S.p.A acquired International Game Technology’s (NYSE:IGT) Italian digital gaming, gaming machine, and sports wagering trading operations for $1.15 billion.
PointsBet, Yahoo! Sports Combination Makes Sense
Partnering with a venerable sports media public figure such as Yahoo! Sports makes sentience for PointsBet. While the companionship already has a media partnership with NBC Sports, the Aussie companion is scuffling inward the ultra-competitive US sports wagering market.
The operator’s losses pass $310 one thousand thousand inwards the US as it battles with larger, more well-heeled rivals such as BetMGM, DraftKings, and FanDuel. PointsBet has issued equity to rise hard currency for US expansion, diluting investors inwards the process. Its electric current market place capitalisation is around $750 million, down from $2.17 1000000000 a twelvemonth ago.
At that market place value, PointsBet would follow easy digestible for Apollo, and it’s potential ane ground the Aussie fellowship has been the center of recent takeover speculation involving other suitors. Additionally, PointsBet has nearly $380 jillion in cash in on hand, making it all the more attractive to a would-be buyer.
PointsBet also has a certify inwards New York — an enviable trait, as information confirms the recent set in motion of nomadic sports betting in the fourth-largest say is an obvious success.
Sports Betting Consolidation Could Heat Up
With the political economy of the US sports wagering landscape painting proving treacherous, analysts anticipate takeover talks testament heat upward with smaller players, such as PointsBet, beingness the middle of practically of the speculation.
For Apollo, the acquisition of a sportsbook manipulator makes sense, because Yahoo! Sports has millions of fantasize sports players that could live converted to sports bettors. That playbook is already tried and true, as highlighted by the dominance of FanDuel and DraftKings inward terms of domestic help sports betting securities industry share.
It’s expected that gaming/media partnerships testament drive to a greater extent than $30 billion worth of iGaming and sports wagering revenue by 2030. Yahoo! Sports currently teams with BetMGM. It’s not shed light on what would follow of that transcription if Phoebus Apollo orchestrates an acquisition of another gaming firm.
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