SportsGrid reportedly seeks buyer after revenue declines and sportsbook partnership losses

SportsGrid, a 24-hour sports wagering media network, is reportedly seeking a buyer and is working with investment bank Telos Advisors on a potential sale, according to Front Office Sports. The company has been in discussions with prospective buyers for several months, and one potential leading bidder has emerged, an unidentified source told the publication. The identity of the interested party has not been disclosed.

The reported sale effort follows several years of declining revenue and the loss of partnerships with major sportsbook operators, including FanDuel and BetMGM. SportsGrid generated roughly $22 million in revenue in 2022, the report said. The company distributes sports betting news, analysis and live programming across platforms including Amazon Prime Video, DirecTV, Fubo, Roku and YouTube.

According to PitchBook data referenced in the report, the privately held company has an estimated 81 employees and three investors. Prospero puts the amount SportsGrid has raised at $6.2 million and its valuation at approximately $11 million. That figure is an estimate rather than a confirmed asking price or sale value, and no asking price or completed sale has been announced.

Founded in 2010, SportsGrid covers leagues and disciplines including football, basketball, soccer, boxing, golf and tennis. The report noted that the relationship between sports betting companies and media businesses is under scrutiny, as partnerships regarded as growth opportunities have not always delivered expected financial returns.

The report also points to other sports media transactions that did not deliver as hoped. DraftKings paid a reported $70 million for VSiN, a sports betting broadcaster, in March 2021, and three years afterward the network went to Musburger Media for a sum that was not disclosed. Reports have since suggested VSiN might be on the market once more. Penn Entertainment, for its part, spent approximately $500 million on Barstool Sports and then sold the media brand back to its founder, David Portnoy, for $1 in August 2023. Macquarie had projected earlier that regulated online gaming operators could bring in more than $30 billion by 2030 through ties with media companies.