Better Collective has bolstered its social media production capabilities after confirming the acquisition of Playmaker HQ.
Aiming to become “the leading digital sports media group”, Better Collective has wrapped up a deal worth around $54m to purchase the social media and sports content production firm.
The affiliate publisher will pay the first $15m upfront, plus $1m in deferred payments, with a further $38m potentially paid out in performance-based payments over the next three years.
To maximize the full $54m price, Playmaker HQ must generate $75m in accumulating revenues and $25m in EBITDA over the next three years.
Starting from today, Better Collective will begin to book Playmaker results through its accounts, but the group’s financial targets remain unchanged for the rest of this year.
Marc Pedersen, CEO Better Collective North America, said: “We have been following Playmaker HQ for some time, and are excited to announce the transaction today. Playmaker HQ offers access to millions of sports fans in the US, the majority of which are new in the Better Collective user base.
“We are excited to help enhance these fans’ sports betting experience, while also being able to utilize Playmaker HQ’s know-how to scale the product and revenue stream across Better Collective’s global portfolio.”
The group highlighted Playmaker’s large audience of “highly engaged generalist sports fans” as a key driver of the deal to complement its legacy audience of sports betting enthusiasts. This, BC states, will increase the value of its offering to operator partners.
Moreover, Playmaker’s array of sports sponsorships will give the Swedish NASDAQ-listed affiliate the ability to monetize audiences aside from its core sports betting audience.
The social media business posts over 2,000 pieces of sports content per month across Instagram, TikTok, Twitter, Snapchat, and YouTube. It boasts over 20 million followers, with growth of almost 300% in the last three years.
Brandon Harris, CEO of Playmaker HQ, added: “Joining forces with Better Collective marks a significant milestone for Playmaker HQ. We cannot wait to make plays with Better Collective’s world-class team who will help us create amazing content, experiences and opportunities, reaching an even wider audience of sports fans globally.
“I know our creators are going to do amazing things with the support of Better Collective’s team and resources. We are just scratching the surface, and we are so excited to align with Better Collective to help achieve our vision of building the world’s leading sports media group.”
