Yahoo introduced on Tuesday that it might purchase Wagr, a peer-to-peer sports activities betting app, in an effort to construct on its already rising fantasy sports activities footprint and doubtlessly increase additional into sports activities betting.
Monetary phrases of the transaction have already been closed and haven’t been disclosed. Privately held Wagr was the primary social gaming firm in america to obtain a sports activities betting license, and it was made in Tennessee.
The acquisition of Wagr is an thrilling step in growing the following era of Yahoo Sports activities’ gaming portfolio,” Yahoo CEO Jim Lanzone stated in an announcement. “Wagr stands out for its progressive deal with neighborhood and social engagement in sports activities gaming. It is an ideal match for a longtime fantasy platform.”
Yahoo is 90% owned by Apollo International Administration, a non-public fairness big with intensive expertise within the gaming business. Verizon Communications owns the remaining 10% of him.
A sensible Yahoo acquisition
Yahoo’s acquisition of Wagr could be a considerable follow-on acquisition for the client’s Yahoo Sports activities division.
It is without doubt one of the dad or mum firm’s most worthwhile and visited models. It has the second largest fantasy sports activities platform. ESPN, And just lately tried to broaden its footprint within the sports activities betting area.
Hypothesis surfaced final yr that Apollo needed to merge Yahoo Sports activities with an current sportsbook operator, however the deal by no means materialized. For Apollo, shopping for a sportsbook operator is smart.
The playbook was utilized by FanDuel and DraftKings, who began out as Every day Fantasy Sports activities (DFS) firms, and now collectively management about three-quarters of the nation’s on-line sports activities betting market.
Wagr will likely be absolutely built-in into Yahoo Sports activities. In keeping with an announcement, Goal brings “intensive expertise in social cellular app growth, person expertise, and community-driven gaming.”
spectacular investor roster
Wagr, like most of the new development firms within the fantasy sports activities and sports activities betting business, has attracted high-profile traders. They embody enterprise capitalists {and professional} group homeowners.
Wagr attracts vital investments from well-known organizations, people and outstanding enterprise capital companies. Graycroft; Nasi VC; Kraft Group, homeowners of the New England Patriots and New England Revolution; Harris Blitzer Sports activities & Leisure, which owns the Philadelphia 76ers, New Jersey Devils and Bitcraft Ventures, in line with a press launch.
The Kraft Group was an early investor in DraftKings, amongst different sports activities firms. The group, led by Harris, is on pole for his place to amass Washington his Commanders within the NFL.
