Genius Sports Buys Second Spectrum for $200M
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Genius Sports is a data and technology firm that closely works with sports leagues, sportsbooks, and sports media services. The company provides integrity resources and data management services. Its headquarters are in the United Kingdom; however, the stock (GENI) is traded on the New York Stock Exchange.
Genius has recently acquired Second Spectrum for a whopping $200 million. Second Spectrum is a platform that works closely with major sporting leagues like the National Basketball Association, Major League Soccer, and the Premier League. This move deepens the portfolio of Genius, securing one of the better video analytic firms in the world when it comes to sports.
What Does Second Spectrum Do?
Second Spectrum was founded in 2013 in Los Angeles, California. The company has seen quick success as its real-time video data collection and analysis service has become the talk of the sports world.
The reason that Genius wanted to buy Second Spectrum is apparent, as it did not have a company that did what Second Spectrum can do. With many of Genius’ clients, it is all about getting reliable information and getting it fast. Second Spectrum’s technology takes video and turns it into data extremely quickly. This technology can then be used in a multitude of ways. In sports betting, it will allow the live odds to be accurate and change fast. For teams, it will provide real-time feedback and analysis that is crucial to understanding the game.
Second Spectrum even works with some of the major media providers like ESPN, Turner, BT Sport, Fox Sports, and Univision. This is because the data that Second Spectrum can create from its video analytics can be then displayed in a unique and interesting way to the viewer as they watch the game. For example, Second Spectrum has created faster analysis for expected goals in soccer, one of the most intriguing stats to help determine how the game is going.
Reaction
This seems like a great move by Genius as it continues the race to provide the best technology and analytics in sports. When you consider how big sports betting is becoming, having the quickest and most accurate technology could mean billions and billions of dollars in contracts.
According to Yahoo Sports, Genius Sports CEO Mark Locke said, “This acquisition supports our long-term strategic vision of utilizing AI tracking, enhanced data insights and transformative technology to revolutionize the sports data landscape for the fans, our customers and sports and media partners.”
It is clear that Genius is excited by this move; otherwise, they would not have spent $200 million on the acquisition. For now, there is little information regarding what will happen to Second Spectrum. It is unclear if the brand will continue to operate the same or will undergo a rebrand under the Genius Sports umbrella.
Many experts see this move as extremely positive, and as of writing this article on May 7th, 2021, the stocks are also reacting positively to the news. The company continues to grow and grow in the right direction.
