The sports betting industry has seen its share of massive deals over the last few years, and the latest one was just announced on Monday. Better Collective agreed to purchase The Action Network for $240 million cash.
Better Collective is a sports betting group from Europe, but it has had its sights set on making a big splash in the United States. The Action Network is based out of New York, and this company will continue its own operations, and the current staff members will retain their roles.
RotoGrinders and VegasInsider are two current offerings from Better Collective, but this new acquisition should allow the company to soar to new heights. Financial experts suggest that BetterCollective will now see close to $100 million in sales in the United States by 2022.
The Action Network won’t see many changes to its current production, but it will now be backed by a European company with plenty of money. This deal is not yet completed, but it will be made official at some point during this quarter.
According to sources, both DraftKings and FanDuel reached out to The Action Network about the possibility of a deal, but Better Collective came through with the better offer. Both of the top US sports betting companies have made similar deals in the past, but losing out on this company could hurt their market shares in the future.
Better Collective Breaking into the US
Jesper Sogard is the CEO of Better Collective, and he made some strong statements about the benefits of this new partnership for his company. In a statement, Sogard said, “By all accounts, this is a great day for Better Collective.”
Even though this is not the first time that Better Collective has made a deal with a US-based company, this is the largest acquisition that it has ever made. The goal for Better Collective is to profit from the growing US industry, and this deal will help make that a reality.
Action Network Pleased With Deal
CEO of Action Network, Patrick Keane, said, “I’m looking very much forward to the journey ahead.” There will likely be some re-structuring of the company when this deal becomes official, but keeping all of the current employees on staff is a bonus for this new partnership.
Action Network has formed many partnerships and relationships with US sportsbooks, and this new deal will provide benefits to those groups as well.
The Chernin Group Involved Again
One of the biggest winners in this deal is The Chernin Group, and this is not the first time that they have been involved in something like this. The Chernin Group is based out of California, and it serves as a controlling investor for the Action Network.
This is now the second straight year that The Chernin Group has been a lead investor in a media company that has been bought out by a group in the sports betting industry. TCG invested in Dave Portnoy and Barstool Sports before Penn National Gaming struck a deal with that digital media company.
That partnership allowed Penn National Gaming to launch the Barstool Sportsbook brand in numerous markets throughout the US.