SharpLink Gaming has agreed a deal to acquire 100% of SportsHub Games Network in an all-stock transaction as it seeks to accelerate its audience growth and fantasy sports position.
SharpLink Gaming acquires SporsHub Games in all-stock deal
Pursuant to the terms of the deal, SportsHub shareholders will receive 3.67 million ordinary shares of SharpLink in exchange for all outstanding capital stock of SportsHub, subject to SharpLink shareholder approval set to be determined in Q4.
A provider of real-money fantasy sports and sports simulation games, SportsHub generated almost $6m in revenues in 2021 and has been identified as ‘key; to SharpLinks’ plans to accelerate its audience growth initiatives.
SharpLink noted that the transaction will offer a ‘plug-and-play solution to ‘easily onboard potential future acquisitions in an efficient and scalable way’.
“This acquisition gives SharpLink access to a large and loyal base of fantasy sports fans who we know are also sports bettors, or would likely become sports bettors when legalized in states where they reside,” said Rob Phythian, Co-Founder and CEO of SharpLink.
“With a thriving ecosystem of cash players, many of whom have money in their user accounts, we have a tremendous opportunity to seamlessly integrate compelling sportsbook offers within all aspects of the user experience.”
“While many of SportsHub’s fantasy players currently reside in states where sports betting has yet to be legalized; these players are primed to convert to bettors if these states become legal.
“In addition, the SportsHub platform is expected to serve as an invaluable proving ground for expanding our C4 technological capabilities to provide users with highly localized, single-point access to products and services beyond embedded personalized sports betting content, including direct access to fan merchandise, ticketing outlets, local business discounts and giveaways and other fan-centric goods and services available within each user’s personal fandom ecosystem.”
Building ‘demonstrable value’
The SportsHub platform currently offers users a number of gaming options including National Fantasy Championships, Bestball10s, Fanball, Fantasy National Golf Club, WhatIfSports and LeagueSafe.
Currently, SportsHub is Sharplink’s largest shareholder, holding around 8.9 million ordinary shares. The deal’s terms stipulate that SBET will be required to distribute such shares to its stockholders effective immediately prior to the closing.
“This accretive acquisition of SportsHub would serve to solidify the foundation on which SharpLink will continue to build demonstrable value of its game-changing C4 engine’s conversion capabilities for all sports media operators, leagues, teams and sportsbooks,” stated Phythian.
“With a goal of significantly increasing the size and scope of the audience of sports fans we serve through our owned and operated network of gaming sites, coupled with the millions of fans we’re reaching through our customers’ online sports properties – including NASCAR, PGA Tour, NBA, Turner Sports and other major sports media sites – SharpLink expects to earn distinction as the industry’s preferred and proven source for high-performing conversion technology that delivers its customers with meaningful new revenue channels and greatly enhanced user experience and engagement.”
John Lettmann, Chairman of the Board of SportsHub, concluded: “We are excited about the combination of SportsHub and SharpLink. It represents a merger that we believe will create a significant opportunity for our companies as the US sports betting industry evolves and matures.
“SharpLink’s leadership and expertise will help accelerate growth within our core fantasy sports and gaming products and allow us to become an industry leader in how sports media and gaming operators interface with sportsbooks to deliver value for all stakeholders.”