PrizePicks Engages Moelis & Co. to Explore Expansion Opportunities

PrizePicks, the biggest daily fantasy sports (DFS) operator in North America, has hired investment bank Moelis & Co. to look into possible mergers and acquisitions. People who know about the situation have commented that the company wants to grow by buying other companies instead of selling its business, reported Bloomberg.

From Atlanta to a Thriving Community: The Rise of PrizePicks in the DFS Landscape

Adam Wexler started PrizePicks in Atlanta in 2017. The company has made its own space in the DFS market by offering a different way to play. Unlike DraftKings and FanDuel where players make lineups to get the most points, PrizePicks lets users bet on whether individual athletes will score more or less than their projected fantasy points. This unique approach has helped the company gain many loyal users. This is notable in PrizePicks’ active Discord community, which has over 448,000 members.

PrizePicks shows its drive for growth through its recent business moves. In April, the company revealed plans for a new 33,000-square-foot main office in Atlanta. The company aims to add 1,000 jobs in the next seven years giving a big boost to the local economy. This step points to PrizePicks’ plan to expand its business and improve its tech setup, which is key in the tough world of DFS and sports betting.

PrizePicks Builds Success on Support from Sports Icons and a Strong Growth Strategy

The investor lineup of the company shows its strong market standing and potential for growth. Big-name backers include Phil Hellmuth, the poker star, Andrew Bogut, who used to play in the NBA, and Andruw Jones once a star for the Atlanta Braves. In a 2021 funding push well-known athletes like Matt Ryan, the former Atlanta Falcons quarterback, and Gabby Douglas, an Olympic gymnast, also put money in PrizePicks. These key investments have strengthened PrizePicks’ financial standing allowing it to go after bold growth plans.

Though exact buyout targets for PrizePicks are not clear, experts in the field think the company might look for assets to boost its tech or maybe step into regular online sports betting.

This speculation comes from the ongoing rivalry with competitors like DraftKings and FanDuel, which have tried to take on the DFS models put forward by PrizePicks and similar companies such as Underdog Sports.

In the past year, Underdog Sports founder Jeremy Levine claimed these big players were pushing to rebrand DFS games as gambling in places where sports betting is not legal yet.PrizePicks’ fresh approach and smart planning put it in a good spot to keep growing and leading the market.

With Moelis & Co.’s know-how, the company is ready to spot and make the most of opportunities that will make its market position in the ever-changing DFS scene even stronger.