XLMedia made a $26 million deal to purchase the US offshore digital media SBD, which has approximately 1.2 million visitors. SBD offers coverage of sports markets, including all major American leagues and many more. This deal gives XLMedia a further boost in the sports betting market, following last year’s CBWG acquisition.
Another High Profile Deal for XLMedia
Sports Betting Dime (SBD), a US offshore iGaming media platform, has signed a $26 million contract with XLMedia. The company began as a sports betting review platform in 2012 and now sports a healthy readership base along with two dedicated mobile apps.
In January 2021, the brand, which covers numerous US sports such as football, basketball, golf, MMA, and many more, reported approximately 1.2 million monthly visitors. After the deal is over, SBD will take advantage of XLMedia regulatory traffic licenses in the nine controlled states where XLMedia is currently allowed to operate.
The deal is scheduled to be signed on March 22 and will cost $21 million in the first year, $10 million of which will be paid in cash after the deal is signed and another $3.7 million after 18 months.
XLMedia CEO Stuart Simms said that the company wants to develop and monetize a well-balanced inventory that is rich in content. Simms wants to see XLMedia’s websites focused on regulated markets.
XLMedia’s Builds on CBWG Momentum with SBD
In an attempt to gain a greater share of the US market and to expand XLMedia’s presence in North America, the company announced a major industry move last year. The company purchased CBWG Sports, another sports betting company.
According to XLMedia, CBWG receives 550,000 site visitors daily. This traffic translates into $4.6 million revenue a year and EBITDA of $2.7 million a year, which provides a strong market footing and a strong potential for growth.
The announcement had instantly impacted XLMedia shares, and the company received a 10% increase following the news as the company acquired strategic assimilations, such as PASportsBooks.com, BetNewJersey.com, and ActionRush.com.
Shortly after the company acquisition in December, Simms said that he was pleased with CBWG’s success in North America. He added that he was delighted that there was a possibility of a further synergy gain from the utilization of SBD’s size, footprint, and capacity.
“We believe the combination of Sports Betting Dime and CBWG provides the group with immediate scale and broad market reach at a time when US sports betting is experiencing significant growth momentum as additional states regulate and open up to legalized sports betting,” he added.
Meanwhile, 29 SBD staff will join XLMedia when the transaction is completed under regulatory approval. XLMedia also reported that the company would sell a minimum of 48,727,398 new ordinary shares at 40p per share to new investors under a proposal of a conditional investment of €19.5 million.
XLMedia expects to reveal $54.1 million in terms of revenue and another $11.5 million in terms of EBITDA when it announces its full-year results at the end of April.