Global gaming giant Entain has repeatedly announced that they are prioritizing mergers and acquisitions. Despite reducing activity in certain areas, the firm has stayed true to their mission and recently acquired a sports data firm for $160 million.
365scores, a well-known cross-media platform that provides scores updates, free-to-play games, social media content and more, has been purchased by Entain for $150 million, with an additional $10 million to be paid once certain milestones have been achieved.
A statement from Entain on the acquisition expressed that it is another step forward in their expansive growth plans. It comes close to the same time that Entain is in the process of taking over NZ Tab, the sports betting monopoly in New Zealand.
A New Way To Deliver Content
365scores is available in many countries, and allows its users to customize their accounts to display only the teams they want to follow. Entain stated that the platform currently has around 15 million active subscribers, and covers 10 sports including football, basketball, and soccer.
The acquisition will give Entain more flexibility with their consumer offerings, and will provide new ways of delivering interactive content. This could be beneficial to their retention efforts, and may ultimately help them leverage their position with BetMGM, the sports betting platform they run in the US with MGM Resorts International.
BetMGM has seen a 71% increase from 2021 to 2022 and is estimated to bring in $2 billion in revenue this year.
Investors Not Entirely Thrilled
The news of the latest acquisition was not met with overwhelming enthusiasm by investors. Entain’s stocks on the London Securities Exchange dropped from £1,259 (US$1,569) Monday to £1,254 (US$1,563) Wednesday. It has since rebounded, reaching £1,282 (US$1,597) at press time, but is still far lower than its 2023 high of £1,587.50 (US$1,977).
Despite this, the stocks are 180% higher than they were three years ago.
Committing To Expansion
Entain has dedicated considerable resources and capital to expanding their global presence. Last year alone, they spent over $924 million on M&A activity around the world.
CEO Jette Nygaard-Andersen noted that this is only a small portion of the gaming M&A industry, which is worth over $170 billion. Last year, Entain acquired SuperSport Group in Croatia for $654 million, and most recently purchased Sportsflare from Tiidal Gaming for $13.25 million.
