SportsGrid Reportedly Seeking a Buyer

SportsGrid, a 24-hour sports wagering network, is reportedly looking for a buyer as it deals with a multi-year revenue slide.

Front Office Sports reported the news earlier today, noting that an unidentified source said SportsGrid is working with investment bank Telos Advisors. The publication also reported that the betting and entertainment content provider has held talks with prospective buyers for several months and one may be emerging as the leader. Those rumored suitors weren’t identified.

SportsGrid provides written content, much of it geared toward sports betting, on its website while its live shows air on platforms such as Amazon’s Prime Video, DirecTV, Fubo, Roku and YouTube, among others.

Closely held SportsGrid notched revenue of $22 million in 2022, but that figure has been declining, according to Front Office Sports.

Sports Betting Media Deals Were Once Hot

There was a time when deals between online casino and sportsbook operators and media companies were the toast of the sports wagering industry. Just five years ago, Macquarie estimated more than $30 billion worth would accrue to regulated online gaming operators by 2030 by way of relationships with media entities.

However, many of those deals didn’t bear fruit for either gaming or media companies. For example, DraftKings paid $70 million to purchase VSiN in March 2021, but sold that sports betting radio network to Musburger Media for a rumored pennies-on-the-dollar price just three years later. Recent rumors suggest VSiN is again for sale.

Another example of a gaming/media relationship gone wrong is Penn Entertainment (NASDAQ: PENN) and David Portnoy’s Barstool Sports. The regional casino company shelled out $500 million to acquire the brash media company only to end up selling it back to Portnoy in August 2023 for just $1.

That rocky track record may imply that a gaming company isn’t pursuing SportsGrid, but that’s not clear as of yet.

SportsGrid Details

Founded in 2010, SportsGrid is a “developer of a wagering platform intended to offer online sports content publication services,” according to PitchBook. “The company’s contents contain information about athletes, teams, and coaches, and also about sports such as football, basketball, soccer, boxing, golf, and tennis in New York, enabling users to avail of a source of wagering information and entertainment.”

The media outlet has an estimated 81 employees and three investors, with its last funding round being classified as “later stage venture capital,” notes PitchBook.

SportsGrid has raised $6.2 million and has an estimated valuation of $11 million, according to Prospero, indicating it could be an affordable acquisition target for any number of suitors.