Amid Dropping Revenue and Lost Deals: SportsGrid Reportedly Up for Sale Sell

SportsGrid, the 24-hour sports wagering media network that vowed to support the American Gaming Association’s Responsible Marketing Code for Sports Wagering three years ago, is reportedly seeking a buyer. The decision follows several years of declining revenue as well as the loss of major sportsbook partnerships. Working with Investment Bank According to Front Office Sports, the company is working with investment bank Telos Advisors to explore a potential sale. An unidentified source told the publication that SportsGrid has been in discussions with prospective buyers for several months, with one potential leading bidder emerging. The identity of the interested party has not been disclosed. SportsGrid delivers sports betting news, analysis, and live programming across multiple platforms, including Amazon Prime Video, DirecTV, Fubo, Roku, and YouTube. The company generated roughly $22 million in revenue in 2022, but its business has weakened in subsequent years following the loss of partnerships with major operators, including FanDuel and BetMGM. The reported sale comes as the relationship between sports betting companies and media businesses is facing ongoing scrutiny. Partnerships that were regarded as major growth opportunities have not always delivered the expected financial returns, prompting some operators to reconsider their investments. Sports Betting Media Deals Lose Their Appeal The sports wagering industry’s expansion in the United States created opportunities for media companies to monetize betting-related content through sponsorships, advertising, and partnerships with sportsbooks. Earlier projections from Macquarie estimated that regulated online gaming operators could generate more than $30 billion through relationships with media companies by 2030. However, several high-profile deals have struggled to meet expectations. DraftKings acquired sports betting broadcaster VSiN in March 2021 for a reported $70 million. Three years later, the company sold the network to Musburger Media for an undisclosed amount. VSiN has since also been the subject of reports that it could be available for sale again. Penn Entertainment‘s partnership with Barstool Sports is yet another solid example in this direction. Penn spent approximately $500 million to acquire the media brand before it decided to sell it to founder David Portnoy for $1 in August 2023. These outcomes could suffice to convince prospective buyers to act more cautiously when thinking about acquiring sports media businesses, with special emphasis on those businesses whose revenues are largely based on their partnerships with sportsbooks. SportsGrid’s Potential Value Founded in 2010, SportsGrid focuses on sports content and wagering-related information covering leagues and disciplines including football, basketball, soccer, boxing, golf, and tennis. The privately held company has an estimated 81 employees and three investors, according to PitchBook information cited in the report. Prospero estimates that SportsGrid has raised $6.2 million and places its valuation at approximately $11 million. Those numbers could suggest that the company might be within reach of potential buyers looking for an established sports betting content operation. Nonetheless, the reported valuation is an estimate and not an actual confirmed asking price or sale value.