LONDON--(BUSINESS WIRE)--XLMedia ("XLMedia" or the "Group" or the "Company"), a leading global digital performance publisher, today announces a significant step forward in its stated strategy to expand its presence in the high growth U.S. Sports market with the acquisition of sports gaming and sports betting business CBWG.
CBWG is a highly successful digital media publishing group based in the U.S. northeast producing in-depth, quality online content, focused on professional and college sports, sports gaming and sports betting.
“It is great to have acquired such an attractive set of assets during an inflection point for the U.S. Sports betting market,” said Stuart Simms, CEO of XLMedia. “On some estimates, almost 60% of the U.S. population is set to have legal access to Sports betting by the end of 2022 – this could include New York, where one of the key assets, EliteSportsNY.com, is focused.”
CBWG owns and operates the popular sports websites CrossingBroad.com and EliteSportsNY.com, and sports betting and gaming focused sites PASportsbooks.com, BetNewJersey.com, ActionRush.com, and PromoCodeKings.com. In addition to having agreements in place with some of the largest sports betting operators in the U.S., the business also has an agency arm, which partners with leading sports media brands to drive user acquisition in the regulated betting markets of Colorado, Illinois, and Tennessee. It is registered as a sports gaming affiliate in six states, including New Jersey and Pennsylvania.
As part of the deal, founders Kyle Scott and Jason Ziernicki will stay on in newly created roles that will leverage their background expertise and market experience in U.S. Sports. “In order to build upon the positive momentum of CBWG, it is important to retain the team, especially the founders, Kyle and Jason; it is great to be able to depend upon their sports expertise and knowledge. They are also exceptionally keen to play a central role in the next exciting stage of the journey, both for this business and for our broader U.S. operations,” said Simms.
“The strategic vision XLMedia has for the U.S. is a big reason why we decided to join forces with Stuart and his team. By combining our resources, I believe we have a collective vision that will take XLMedia to new heights here in the U.S. underpinned by strong affiliate-based growth to ultimately build a major media brand," said Ziernicki.
“Our core audience is comprised of sports fans who appreciate honest and authentic voices. With our owned sites and agency partnerships, including brands that have built loyal audiences over a decade, we have trusted voices in local sports markets,” said Scott.
“It’s exciting to be able to establish such a meaningful presence in the U.S. through the CBWG acquisition,” said Ken Dorward, President of North America for XLMedia. “With the U.S. Sports betting market on the rise, leveraging the respective skills sets of our teams with the CBWG portfolio of sites and the XLMedia betting heritage should offer a powerful foundation for growth and scale.”
XLMedia will pay an upfront consideration of USD$12 million in cash, new XLMedia plc shares (representing an aggregate value of USD$3.5 million), as well as potential future contingent consideration of up to an additional USD$9.5 million.
XLMedia is a leading global digital performance publisher. Operating globally across a variety of verticals including online gambling, personal finance and sports, the Group has established proprietary tools and methodologies to identify and target high value consumers on behalf of its customers, brands and operators. XLMedia has identified North America as a core target market, where it has already established a solid foothold in Personal Finance, led by content-rich websites which are gaining traction. The Company will seek to further develop its Personal Finance presence and significantly increase its investment in the growing U.S. Sports market through partnerships and acquisitions.
About CBWG Media:
Jointly owned by CB Sports and Warwick Gaming, CBWG Media Group LLC encompasses the largest independently-owned U.S. sports betting affiliate network, across a range of markets.
CBWG also partners with other sites in select markets to deliver legal gambling operators comprehensive and superior marketing services that address all areas of the acquisition funnel.