Financial news outlet CNBC is stating that Apollo Global Management, an investment firm focused on private equity, is in preliminary discussions with multiple sports wagering businesses regarding a possible amalgamation with Yahoo Sports. Apollo acquired Yahoo from Verizon in the previous year for a sum of $5 billion.
Insiders indicate that Apollo has engaged in conversations with entities such as PointsBet Holdings, an Australian enterprise with a market valuation of approximately $760 million.
It’s crucial to emphasize that these dialogues are in their nascent phase, and there’s no assurance of a finalized agreement. Neither Yahoo, Apollo, nor PointsBet have issued statements concerning the speculation.
Nevertheless, the transaction could ultimately lead to Yahoo Sports being divested from its parent organization. Any newly formed entity would likely persist in utilizing the Yahoo brand.
CNBC highlights that “Yahoo held a pioneering role in fantasy sports utilities and boasts millions of users who could represent prospective patrons for a legitimate sports betting venture.”
Nineteen states across the US have currently granted legal status to mobile sports wagering. However, CNBC reports that the sector has encountered difficulties in recent months as companies are engaged in an intense struggle to secure customers, consequently escalating expenses.
Smaller publicly traded sports betting groups like Rush Street Interactive and PointsBet have faced challenges over the past year in maintaining pace with industry leaders such as DraftKings, FanDuel, and BetMGM. Caesars Entertainment’s William Hill, Rush Street’s BetRivers, and Fox Bet are also contenders in the arena.
A source disclosed that merging is unavoidable in the internet gaming industry, stating, “All parties are in discussions presently.” Following its acquisition of the Venetian and Palazzo casino properties last month, industry leader Apollo Global Management aims to utilize its control of Yahoo Sports to market its wagering offerings, as reported by CNBC.
