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Posted on: April 25, 2023, 04:13h.
Final up to date on: April 26, 2023, 03:39h.
In an effort to additional solidify its already expansive fantasy sports activities footprint and doubtlessly increase additional into sports activities wagering, Yahoo introduced Tuesday it’s buying Wagr, a peer-to-peer sports activities betting app.
Monetary phrases of the transaction, which has already closed, weren’t disclosed. Privately held Wagr was the primary social gaming firm within the US to land a sports activities wagering allow, having finished so in Tennessee.
The acquisition of Wagr is an thrilling step within the improvement of the subsequent technology of Yahoo Sports activities’ gaming portfolio,” stated Yahoo CEO Jim Lanzone in an announcement. “Wagr stands out for his or her progressive emphasis on group and social engagement in sports activities gaming, which aligns completely with the Yahoo award-winning fantasy platform that has introduced tens of thousands and thousands of followers collectively round their love of sports activities for over 20 years.”
Yahoo is 90% owned by personal fairness big Apollo International Administration, which has in depth gaming business expertise. Verizon Communications owns the opposite 10%.
Smart Acquisition for Yahoo
Yahoo buying Wagr makes for a sensible bolt-on acquisition for the client’s Yahoo Sports activities arm.
That’s one of many mother or father firm’s most worthwhile and visited models. It has the second-largest fantasy sports activities platform, behind solely ESPN, and has lately tried to broaden its footprint within the sports activities wagering area.
Final 12 months, hypothesis surfaced that Apollo needed to merge Yahoo Sports activities with a longtime sportsbook operator, however a deal didn’t materialize. For Apollo, the acquisition of a sportsbook operator is smart as a result of Yahoo Sports activities has thousands and thousands of fantasy sports activities gamers who may very well be transformed to sports activities bettors.
That playbook was utilized by FanDuel and DraftKings, which began out as each day fantasy sports activities (DFS) firms, and now mix to regulate roughly three-quarters of the home on-line sports activities betting market.
Wagr shall be absolutely built-in into Yahoo Sports activities. The goal brings “in depth expertise in social cellular app improvement, person expertise and group pushed video games,” in keeping with the assertion.
Spectacular Investor Roster
As has been the case with so many rising development firms within the fantasy sports activities and sports activities betting industries, Wagr attracted some well-known buyers. These embody enterprise capitalists {and professional} crew homeowners.
Wagr has attracted important investments from famend organizations, people, and outstanding enterprise capital companies together with Seven Seven Six, led by Reddit cofounder Alexis Ohanian; Greycroft; Pear VC; the Kraft Group, homeowners of the New England Patriots and New England Revolution; Harris Blitzer Sports activities & Leisure, homeowners of the Philadelphia 76ers and New Jersey Devils and BITKRAFT Ventures,” in keeping with the press launch.
Kraft Group was an early investor in DraftKings, amongst different sports activities firms. A gaggle led by Harris is in pole place to amass the NFL’s Washington Commanders.
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