PointsBet stock gains 86% on NBCUniversal partnership28th August 2020 9:20 am GMT
Sydney-listed gaming operator PointsBet continues to strengthen its position in the United States, with its latest deal seeing broadcaster NBCUniversal Media (NBC) acquire a 4.9 per cent stake in the business.
The partnership with NBC will give PointsBet access to leading TV and digital assets in the United States, including the largest sports audience of any US media company, with the operator committing to a $393m marketing spend over the next five years.
The media partnership gives PointsBet the exclusive right to certain pre-game, post-game and in-game promotional spots on a selection of NBC Sports’ television and digital platforms, including exclusive gameday integrations and sponsorship of the NBC Sports Predictor app.
PointsBet chief executive Sam Swanell said that becoming the exclusive official sports betting partner of NBC Sports is transformational for his company.
“NBC Sports, an iconic brand and holder of the largest sports audience in the US, brings significant credibility and trust to PointsBet’s operations. Through the NBC Sports partnership, PointsBet gains access to market-leading broadcast assets which span 184m viewers and digital assets which span 60m monthly active users,” said Swanell.
“These assets will act as the cornerstone of our marketing strategy and combined with our in-house technology and products, as well as our talented and experienced team, will deliver outstanding client acquisition and retention efficiency as we scale rapidly over the next five years. NBCUniversal’s decision to take an equity stake in PointsBet illustrates the alignment of our strategies, the trust across teams, and our shared belief that the US gaming market is a once in a lifetime opportunity.”
The equity participation, which is subject to shareholder approval, will give NBCUniversal new fully-paid ordinary shares in PointsBet equating to a 4.9 per cent stake, alongside 66.88 million options maturing in five years. The combined value of the shares and options will fully offset the committed marketing spend.
“We are excited to begin this partnership with PointsBet, which will deliver unmatched sports betting engagement opportunities across multiple platforms,” said David Preschlack, president of NBC Sports Regional Networks and EVP of content strategy at NBC Sports Group.
“For NBCUniversal and PointsBet, this agreement provides considerable opportunities in the fast growing sports betting marketplace, which is unique to this extensive and robust multi-year agreement. Looking ahead, we are also excited about the significant activation opportunities that will come to fruition as sports betting continues to proliferate across the US.”
Shares in PointsBet Holdings Ltd. (ASX:PBH) closed 86.67 per cent higher on the news at AUD$14.00 per share in Sydney Friday, having set a new 52-week high of $16.40 per share earlier in the day.