XLMedia Accelerates U.S. Sports Market Presence With CBWG Acquisition
December 10 2020 - 3:00AM
Business Wire
- Strategic acquisition of professional and college sports,
sports gaming and sports betting content provider
- CBWG founders Kyle Scott and Jason Ziernicki to remain with the
business to spearhead future growth
- CBWG (“CBWG”) is comprised of CB Sports, Warwick Gaming,
and its jointly-owned subsidiary CBWG Media Group
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.
About XLMedia:
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.
Sites include: CrossingBroad.com EliteSportsNY.com
PromoCodeKings.com PASportsbooks.com BetNewJersey.com
ActionRush.com
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201210005306/en/
For further information:
XLMedia Communications Kieran McKinney, Investor
Relations ir@xlmedia.com
Vigo Communications Jeremy Garcia Tel: 020 7390 0233
www.vigocomms.com
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