Traditional IPO Consideration by Sportradar Following Breakdown of SPAC Discussions
A Fresh Take:
In the wake of a disheartening setback with the NFL, Sports data juggernaut Sportradar is looking past a potential merger with Horizon Acquisition Corp. II (HZON). Instead, they're eyeing a conventional IPO to hit the public market, according to the latest scoop from industry insider, Sportico.
Initially, Sportradar had penned a deal-in-principle with HZON, led by LA Dodgers co-owner Todd Boehly, back in March, valuing the company around a stunning $10 billion. However, the partnership never materialized, with sources informing Sports Handle that negotiations fell through. Without the lucrative NFL betting contract, a rehashed deal might have incurred a substantial drop in valuation.
Sportradar, initially favored for the distribution of the NFL's official sports betting data in the U.S., lost the bid to Genius Sports in April. The multi-year deal, worth up to a billion dollars, granted Genius Sports exclusive global distribution rights to the NFL's sports betting, play-by-play, and "Next Gen" stats. This move dealt a bitter blow to Sportradar, especially given their previous agreement with the NFL for official betting data.
In response, Sportradar's Chief Commercial Officer, Eduard Blonk, penned a letter to sportsbook clients, shortly after the NFL deal expired, outlining their new strategy. The letter addressed the irrational economics of the proposed deal, which would have increased fees significantly or led to substantial losses for the company.
Not one to be sidelined, Sportradar forged ahead, securing marketing deals with the NFL's Baltimore Ravens and New York Jets. These partnerships, however, do not include access to the league's official betting data feed.
Sportradar remains a significant player in the sports betting data space, maintaining exclusive data rights with the NHL, NBA, MLB, NASCAR, FIFA, and UEFA. They recently secured the ultra-low latency betting data rights for DAZN and the exclusive rights for the FIFA Club World Cup 2025. They also stated their fiscal year 2025 guidance, with projected revenue of at least $1.273 billion and an adjusted EBITDA of $281 million.
As of this writing, HZON shares are trading at $9.81, a far cry from their high of $11.89 back in March with the potential Sportradar deal. With ongoing investment from Mackenzie Financial Corp and a potential acquisition of IMG ARENA, Sportradar continues to chart a course for growth in the ever-evolving sports betting and media industries.
- Sportradar, despite the setback with the NFL, is investigating technology-driven advancements in sports betting, aiming to elevate their position in the industry and reclaim lost ground.
- Amidst the fluctuating venture market, a noteworthy stake in Sportradar is gaining attention, with investors confident in the company's potential growth in the sports betting and media sectors.
