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Playmaker Capital Shareholders Overwhelmingly Approve Better Collective’s €176m Acquisition

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In a resounding show of support, shareholders of Playmaker Capital have overwhelmingly approved the acquisition of the company by Better Collective, with a staggering 99.9% in favor.

The acquisition, valued at €176 million, is set to usher in a new era for both entities, significantly enhancing Better Collective’s position in the Latam market while solidifying its presence in the United States.

This monumental agreement, scheduled to conclude in February, marks Better Collective’s second-largest acquisition to date, following its $240 million purchase of Action Network. The acquisition is poised to reshape the landscape of digital sports media and propel both companies to new heights.

Shareholder Confidence

The overwhelming support from shareholders during the Extraordinary General Meeting on January 22 was widely anticipated. A substantial 49.8% of Playmaker Capital’s shareholder capital is owned by directors, officers, and certain shareholders who had already expressed their consent for the deal.

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This resounding vote of confidence sets the stage for a transformative journey for Playmaker Capital, Better Collective, and their stakeholders, as they combine forces to chart new territories in the world of sports media and digital entertainment.

Elevating the Game

Better Collective’s acquisition of Playmaker Capital underscores its commitment to becoming a dominant force in the industry. This strategic move positions Better Collective as a leading player in the Latam market while fortifying its US presence. It’s a pivotal moment for both companies as they leverage their strengths to achieve unrivaled success.

With Action Network CEO Patrick Keane stepping down in the wake of continued growth post-acquisition, a similar scenario is expected with Playmaker Capital’s leadership team. Their continuity will play a crucial role in steering the company toward a prosperous future.

Financial Success

The numbers speak for themselves. In Playmaker Capital’s Q3 financial report, it boasted €55 million in revenue for the trailing 12-month period, along with €15 million in EBITDA. These impressive figures reflect the company’s robust performance and potential for further growth.

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Playmaker Capital’s impressive portfolio of sports media brands includes The Nation Network, Futbol Sites, Yardbarker, and Wedge, a pure affiliate marketing operator acquired in 2022. These assets position the company as a key player in the digital sports media landscape.

A Vision Realized

The acquisition fulfills a vision set forth by Playmaker Capital co-founder and CEO Jordan Gnat, who had described it as a “transformational deal” that would propel the company to new heights. Gnat expressed excitement over joining the Better Collective family, emphasizing the alignment of vision and culture between the two companies.

The integration and synergies between Playmaker Capital and Better Collective are expected to be highly accretive to shareholders, further solidifying their shared mission of becoming the leading digital sports media group.

A Path to Growth

Better Collective envisions a path to achieve a post-integrated Enterprise Value/EBITDA of 2026e below 5x, a significant improvement compared to the acquisition’s initial implied EV/EBITDA multiple of 11.7x based on publicly available financial documents. This ambitious goal will be realized through enhanced scale, increased investments in product, technology, and marketing, as well as operational synergies.

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Better Collective also plans to elevate its portfolio by implementing performance-based marketing strategies across the business, optimizing its operations, and delivering even greater value to its stakeholders.

As the acquisition takes shape, both Playmaker Capital and Better Collective are poised for an exciting journey ahead, promising innovation and growth in the dynamic world of digital sports media.

Conclusion

With shareholder approval secured and a promising future on the horizon, Better Collective’s acquisition of Playmaker Capital is set to redefine the digital sports media landscape. This strategic move not only bolsters Better Collective’s position as a market leader but also promises greater value for shareholders and sports enthusiasts alike. As the two entities join forces, they are poised to achieve unparalleled success and become the dominant players in their field.

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Jerome, a valuable addition to the Gamingo.News team, brings with him extensive journalistic experience in the iGaming sector. His interest in the industry was sparked during his college years when he participated in local poker tournaments, eventually leading to his exposure to the burgeoning world of online poker and casino rooms. Jerome now utilizes his accumulated knowledge to fuel his passion for journalism, providing the team with the latest online scoops.

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Business

FDJ’s Acquisition of Kindred Group Shaping the Future of Global Gaming

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FDJ’s acquisition of Kindred Group, facilitated by regulatory approval and strategic shareholder engagement, signifies a transformative moment in the gaming industry. This deal exemplifies the intricate balance between regulatory compliance, shareholder value, and strategic growth ambitions. As the industry stands at the cusp of further consolidation and innovation, the FDJ-Kindred transaction heralds a new era of strategic realignment and competitive positioning in the global gaming landscape.


A Monumental Shift in Gaming Dynamics

The Swedish Financial Market Supervisory Authority (SFSA)‘s approval of Française des Jeux’s (FDJ) offer to acquire Kindred Group marks a pivotal moment in the global gaming and betting sector. This green light not only accelerates FDJ’s strategic expansion but also underscores the evolving landscape of international gaming regulations and corporate alignments.

Navigating Regulatory Waters

The SFSA’s endorsement is a crucial step in FDJ’s ambitious acquisition plan, setting the stage for a public offer slated to commence imminently. This regulatory approval highlights the meticulous scrutiny and compliance standards governing mergers and acquisitions within the sector, ensuring that such transactions align with market stability and shareholder interests.

A Call to Action for Kindred Shareholders

The forthcoming Extraordinary General Meeting (EGM) represents a critical juncture for Kindred Group, with proposed statutory amendments necessary for facilitating the acquisition. This meeting, aimed at achieving the requisite shareholder consensus, signals the importance of shareholder engagement in steering corporate direction and strategy.

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The Path to Acquisition: Shareholder Conviction and Strategic Vision

FDJ’s pursuit of Kindred Group, contingent upon securing 90% of total capital, reflects a strategic maneuver to consolidate its position in the global gaming market. The offer per share, valuing Kindred at approximately €2.6 billion, has garnered unanimous board endorsement and significant shareholder backing, illustrating the alignment of strategic interests and the perceived value of this consolidation.

Activist Influence and Strategic Realignment

The role of activist shareholders, notably Corvex Management, in advocating for Kindred’s sale underscores the dynamic interplay between corporate governance and shareholder activism. Their successful campaign for board representation and strategic evaluation reflects a broader trend of active investor engagement in shaping corporate trajectories.

Implications for the Global Gaming Industry

This acquisition not only exemplifies the financial and strategic considerations underpinning such deals but also highlights the regulatory complexities and shareholder dynamics involved. As the gaming industry continues to evolve, driven by technological advancements and regulatory changes, the FDJ-Kindred merger serves as a case study in strategic growth, market consolidation, and the pursuit of competitive advantage.

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