SportsGrid Up for Sale Amid Declining Revenue

SportsGrid is up for sale. The 24-hour sports wagering network is reportedly working with investment bankers to find a buyer as it navigates a multi-year drop in revenue.

Front Office Sports reported the news, noting that an unidentified source said SportsGrid is working with investment bank Telos Advisors to find a buyer. The betting and entertainment content provider has reportedly held talks with prospective suitors for several months, with one potential lead buyer emerging.

SportsGrid provides digital content and streams live shows across major platforms including Amazon Prime Video, DirecTV, Fubo, Roku, and YouTube. While the closely held company generated approximately $22 million in 2022, revenues have tumbled in recent years following the loss of major sportsbook partnerships with operators like FanDuel and BetMGM.

A Cooling Market for Sports Betting Media

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.

This rocky track record suggests gaming operators may be hesitant to acquire media assets, though potential suitors for SportsGrid remain undisclosed.

SportsGrid Profile

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.