In the United States and alternative investments firm Apollo Global Management Incorporated is reportedly considering whether to merge its newly-acquired Yahoo Sports digital news service with an existing online sportsbetting operator.
According to a Wednesday report from CNBC.com, the New York-listed enterprise inked a deal with telecommunications giant Verizon in May that saw it spend $5 billion so as to purchase a majority stake in prominent web services provider Yahoo. The source detailed that this arrangement included the Yahoo Sports enterprise, which launched in 1997 and was an early provider of fantasy sports tools for legalized sportsbetting.
Apollo Global Management Incorporated is now reportedly eager to take advantage of the growing list of American jurisdictions that have recently legalized some form of sportsbetting and is in search of a partner to help it spin off Yahoo Sports into a dedicated online sports wagering service. The source disclosed that Australian provider PointsBet Holdings Proprietary Limited is just one of many such potential collaborators alongside the likes of Rush Street Interactive, Caesars Entertainment Incorporated and Fox Corporation.
CNBC.com reported that Apollo Global Management Incorporated has already held preliminary talks with PointsBet Holdings Proprietary Limited regarding a possible merger for Yahoo Sports. This Melbourne-headquartered firm purportedly already runs online sportsbetting services in ten American states through its PointsBet USA subordinate and has a market valuation in the region of $760 million.
Mobile-friendly online sportsbetting is now legal in 19 American states including New Jersey, Colorado and Pennsylvania although the industry has reportedly experienced something of a slump in recent months as providers have begun spending increasingly large amounts of cash on customer acquisition campaigns. The nation’s largest operator, DraftKings Incorporated, last month purportedly projected that it would record an earnings loss for 2022 of between $825 million and $925 million after a consensus estimate put the year-end figure at something like $570 million.
Nevertheless, PointsBet Holdings Proprietary Limited recently began running a series of promotional television spots in the United States featuring former New Orleans Saints quarterback Drew Breeze and purportedly furthermore holds a multi-year partnership with Comcast Corporation-owned broadcaster NBCUniversal Media. CNBC.com reported that Yahoo inked an arrangement of its own with the BetMGM service from MGM Resorts International and Entain in 2020 that allows punters to wager via Yahoo Sports on a multitude of sporting action.
Finally, CNBC.com reported that Apollo Global Management Incorporated named the former Chief Executive Officer for Tinder, Jim Lanzone, to fill the same post at Yahoo in September but is still looking for figures to head its Yahoo Sports and Yahoo Finance units. The parent with its $455 billion in managed assets purportedly furthermore last year finalized a $2.25 billion arrangement that saw it take over the running of The Venetian Resort Hotel Casino and its 3,000-room The Palazzo hotel as well as the nearby Sands Expo and Convention Center from Las Vegas Sands Corporation.