PrizePicks Hires Bank to Scout for Acquisition Opportunities
Daily fantasy sports (DFS) giant PrizePicks reportedly hired investment bank Moelis & Co. to hunt for acquisition opportunities.
Bloomberg broke the news late Thursday, citing unidentified sources with knowledge of the matter. One of the sources told the outlet the gaming company’s isn’t positioning to sell itself. The Atlanta-based DFS operator is privately held.
PrizePicks says it’s the largest DFS company in North America and that assertion could be credible because the operator and some of its rivals found avenues for gaining business from DraftKings and FanDuel — the forefathers of the DFS industry.
PrizePicks differs from its entrenched rivals in notable fashion. A competitor building a lineup on DraftKings or FanDuel is aiming to accumulate as many points as possible. But on PrizePicks, the projected fantasy points for each player are posted on the platform, and gamblers build their lineups and then wager on the over/under of those points estimates.
Potential Targets for PrizePicks
With PrizePicks reportedly not looking to sell itself, attention turns to what type of targets the company could consider. For now, it’s just speculation, but there is an array of assets and gaming operators PrizePicks could evaluate.
A deal to bolster its technology stack — something that’s always important to DFS and sports betting operators — could be a possibility for PrizePicks, though the company hasn’t commented to that effect. Additionally, there have rumors that PrizePicks could consider a move into traditional online sports betting because rivals DraftKings and FanDuel have attempted to disrupt the model put forth by PrizePicks and Underdog Sports.
Last August, Underdog Sports founder Jeremy Levine accused DraftKings and FanDuel of using political sway to convince lawmakers in various states, including some in which sports betting is not permitted, that the games offered by Underdog, PrizePicks, and comparable firms amount to another form of wagering, not DFS.
It is clear that PrizePicks is in expansion mode. In April, the company announced plans for a new 33,000 square-foot Atlanta headquarters, adding that it intends to boost the size of its workforce by 1,000 over seven years, estimating the economic benefit to Georgia at $25 million.
PrizePicks Has Impressive Investor Roster
PrizePicks sports an impressive list of investors. A 2020 funding round valued at $850,000 led by Parlay Capital Holdings included poker legend Phil Hellmuth. The founders of Poker Central and former NBA No. 1 draft pick Andrew Bogut became PrizePicks investors in January 2021. Former Atlanta Braves star Andruw Jones has been an investor in the DFS firm since 2019.
Another 2021 funding round saw former Atlanta Falcons quarterback Matt Ryan and Olympic gymnast Gabby Douglas join the company’s investor roster.
A Series A funding round valued at $8.67 million was conducted in March with Phoenix Capital Ventures listed as the primary investor, according to CB Insights. AMJ Ventures and Las Vegas-based Australis Capital are also among PrizePicks venture investors, according to Tracxn.
The post PrizePicks Hires Bank to Scout for Acquisition Opportunities appeared first on Casino.org.
