Playmaker Acquisition: Key Details, Impact, and What Comes Next

Better Collective's acquisition of Playmaker Capital marks a significant milestone in the digital sports media landscape. Valued at approximately EUR 176 million, this strategic move is set to enhance Better Collective's market position in both North and South America, expanding its audience reach and diversifying its product offerings.

What Is Playmaker?

Founded in 2020, Playmaker is a sports news and media platform offering a variety of sports-related podcasts and shows. Its core products include popular podcasts like "The Big Podcast" hosted by Shaquille O'Neal and "Da Get Got Pod" hosted by Marshawn Lynch. Playmaker's unique selling points include high-profile hosts, diverse content covering sports and entertainment, and a strong subscriber base. Additionally, being part of the publicly listed Better Collective group enhances its market credibility.

Who Acquired Playmaker?

Better Collective is a leading digital sports media group known for engaging sports fans through compelling content and fostering passionate communities worldwide. The company operates various global and national sports media brands and has a dedicated section for esports. Additionally, Better Collective provides detailed investor relations information and numerous career opportunities. Headquartered in Copenhagen, Denmark, the company has a strong global presence with offices in Asia, Europe, North America, and South America, solidifying its significant influence in the sports media market.

When Was Playmaker Acquired?

Better Collective completed its acquisition of Playmaker Capital on February 6, 2024. This acquisition is part of a broader trend in the digital sports media industry, where companies are consolidating to create larger, more competitive entities. The timing aligns with the strategic goals of both Playmaker and Better Collective to become leading digital sports media groups, responding to increasing competition and the need for scale to deliver better content experiences and advertising solutions.

Why Was Playmaker Acquired?

Market Expansion: The acquisition of Playmaker Capital allows Better Collective to significantly grow its audience across the Americas. By integrating Playmaker's portfolio of sports media brands, Better Collective secures a market-leading position in South America and strengthens its presence in North America. This strategic move nearly doubles Better Collective's global audience, enhancing its market reach and influence.

Technology Integration: Playmaker leverages its in-house technology stack, Bench, to deliver digital content experiences for sports fans. Integrating this technology with Better Collective's existing infrastructure creates synergies that enhance the combined company's technological capabilities. Additionally, Playmaker's paid media division, Wedge, will be integrated into Better Collective's paid media division, boosting their capabilities in placing paid advertising on third-party sports media sites and search platforms like Google and Bing.

Competitive Advantage: The acquisition positions Better Collective to become the leading digital sports media group by combining Playmaker's highly engaged audiences and premier fan-centric media brands with Better Collective's resources and expertise. This strategic move provides significant operational synergies, opportunities for rationalization, and monetization enhancements. By acquiring Playmaker HQ, Better Collective gains access to a large and engaged audience across multiple social media platforms, which can be a significant competitive advantage in the sports and entertainment media market.

Acquisition Terms

• Acquisition Price: Approximately EUR 176 million (or $188 million).
• Payment Method: Shareholders can elect to receive CAD$0.70 in cash per common share, 0.0206 ordinary shares of Better Collective per common share, or a mix of CAD$0.245 in cash and 0.0134 ordinary shares of Better Collective per common share. The consideration is subject to proration with an aggregate cap of 65% in shares and 35% in cash.
• Key Conditions or Agreements:
  • The transaction will be effected by a court-approved plan of arrangement and requires Playmaker shareholder and court approvals, regulatory approval, and customary closing conditions.
  • Rollover Shareholders (Jordan Gnat, JPG Investments Inc., and their affiliates) will receive a combination of cash and Better Collective shares for their Rollover Shares.
  • Rollover Shareholders and Relay Ventures Fund III Capital Inc. have agreed not to transfer or sell the Better Collective Shares they receive for a period of up to 3 years and 2 years, respectively, subject to the terms of their lock-up agreements.
  • Playmaker's shares are expected to be delisted from the TSX Venture Exchange, and Playmaker intends to apply to cease to be a reporting issuer under applicable Canadian securities laws.
  • Non-solicitation provisions with a "fiduciary out" clause and a termination fee under certain circumstances.

Impact on Playmaker

The acquisition of Playmaker by Better Collective brings significant changes to its operations and management. Playmaker will be delisted from the TSX Venture Exchange and cease being a reporting issuer under Canadian securities laws. Jordan Gnat, Playmaker's CEO, will continue his involvement as part of the Better Collective family, ensuring a smooth transition and continuity in leadership. The integration of Playmaker's paid media division, Wedge, into Better Collective's paid media division is expected to enhance operational efficiencies and expand their advertising capabilities.

In terms of product offerings and services, the acquisition is poised to nearly double Better Collective's global audience, integrating Playmaker's popular sports media brands like Yardbarker, The Nation Network, and Futbol Sites into its portfolio. This expansion will likely lead to enhanced content and services for sports fans. Employee reactions have been positive, with teams inspired by the cultural fit and future potential. While specific customer reactions are not detailed, the strategic benefits and synergies suggest an optimistic outlook for improved customer engagement and satisfaction.

For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.