Platform acquisition provides Playmaker with
significant exposure to the Canadian sports market; Immediately
adds more than 27 million annual users to the Playmaker audience
ecosystem; Establishes Playmaker’s presence in Canada in advance of
the opening of full sports betting in Ontario in Q1 2022.
Playmaker Capital Inc. (TSX-V: PMKR) (“Playmaker”), the digital
sports media company that delivers authentic content experiences
through its portfolio of sports media and technology brands, has
significantly strengthened its presence in Canada with the
acquisition of The Nation Network (“TNN”) and its wholly-owned
subsidiary, Daily Faceoff (“DFO”). TNN is an Edmonton-based,
hockey-first digital media group that attracts millions of sports
fans annually to its network of fan community sites, podcasts, and
rapidly growing hockey reference property, DFO.
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Playmaker significantly strengthens its
presence in Canada with the acquisition of The Nation Network and
Daily Faceoff (Photo: Business Wire)
Co-founded in 2007 by CEO Jay Downton, TNN and DFO have
generated over one billion pageviews since their inception and have
become one of the largest online destinations for independent
sports coverage in North America, with a combined annual audience
of over 27 million users. TNN’s differentiated channels of
distribution deliver breaking news, analysis, and fantasy
projections to their highly engaged group of users, including
through a subscription model, a net-new revenue stream within the
Playmaker ecosystem. TNN also delivers market-leading analysis
through the platforms of several key influencers, including North
American hockey authority, Frank Seravalli, who joins the Playmaker
family in his role as DFO’s President of Hockey Content. Mr.
Seravalli also serves as the President of the Hockey Writers
Association and is one of the NHL’s most respected sources for
breaking news and league developments.
TNN and DFO generate more than 5.2 million monthly sessions and
engage with 5.4 million social media followers across multiple
platforms including Instagram, Twitter, Facebook and TikTok. The
TNN brand family includes more than ten web properties, including
Oilersnation.com, Canucksarmy.com, Hockeyfights.com and Daily
Faceoff, the popular source of breaking news, analysis, and fantasy
data that generates more than 83 million annual page views. TNN
also produces a host of podcasts, including DFO Rundown and a
partnership with Dropping the Gloves hosted by John Scott, that
combine for 4.6 million annual downloads.
“We are beyond excited to be joining the Playmaker family. It’s
refreshing to work with a group that understands and shares the
same fan-first culture as we do, because like us, they are sports
fans,” commented Jay Downton, co-founder and CEO of TNN. “This is a
huge momentum builder for The Nation Network as it will allow us to
invest more in content creation, talent recruitment, partnerships,
and strategic acquisitions, all of which will better serve and
expand our amazing online community. We are excited to get to
work!”
In September 2021, TNN and top-tier online gaming operator
PointsBet entered into a multi-year deal positioning PointsBet
Canada as the exclusive sports betting partner to both TNN and DFO.
Through this partnership, PointsBet Canada is expected to deliver
odds integrations, analysis from PointsBet experts, and access to
enhanced tools to drive deeper engagement across TNN platforms.
“The acquisition of TNN and DFO is further proof that Playmaker
is continuing to execute against its plan to acquire and roll up
valuable, profitable digital media assets that cover major sports
in important markets,” said Jordan Gnat, Playmaker CEO. “TNN is
Playmaker’s first acquisition in our home market of Canada, giving
Playmaker true audience reach from the top of Canada to the bottom
of Argentina. This is particularly important in Canada as we look
towards Q1 2022 when third party sports betting operators will be
permitted to operate in Ontario.”
“The TNN acquisition helps diversify Playmaker’s revenue streams
through a subscription-based premium content model and with a
significant sportsbook partnership already in place. I am delighted
to welcome Jay and Frank and the whole Nation team into the
Playmaker family,” added Jordan Gnat.
"I could not be more excited to join the Playmaker family. There
is no doubt combining forces with Playmaker will unlock additional
resources and the creative juice that will power our team,
turbocharging our vision to make it a reality more quickly than we
originally planned,” commented Frank Seravalli, President of Hockey
Content at Daily Faceoff. “Partnering with Playmaker better enables
us to continue on our trajectory in becoming the premier
destination for refreshingly independent hockey coverage in the
digital space."
TRANSACTION DETAILS
Pursuant to the terms of a purchase agreement dated November 2,
2021, Playmaker acquired 100% of TNN for aggregate consideration of
up to CAD$15 million. The purchase price consideration consisted of
(i) a closing cash payment of CAD$6.0 million, (ii) the issuance of
CAD$6.0 million of Playmaker common shares (the “Playmaker Shares”)
on closing, priced at CAD$0.68 per Playmaker Share and (iii) up to
a maximum of CAD$3.0 million in the form of an earn-out, payable to
the sellers upon TNN achieving certain EBITDA and revenue targets
over the twelve-month period following closing. On closing,
Playmaker established a management bonus plan, pursuant to which
certain employees of TNN can receive a bonus payment of up to $3.0
million upon TNN achieving certain EBITDA and revenue targets over
the two-year period beginning on the 12-month anniversary of the
closing date.
TSX VENTURE EXCHANGE DISCLAIMER
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. Satisfaction of any portion of the earn-out amount or
management bonus plan payments in Playmaker common shares will be
subject to the prior approval of the TSX Venture Exchange.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking information
within the meaning of applicable securities legislation, which
reflects Playmaker’s current expectations regarding future events.
The words “will”, “expects”, “anticipates”, “believes”, “plans”,
“intends” and similar expressions are often intended to identify
forward-looking information, although not all forward-looking
information contains these identifying words. Specific
forward-looking information contained in this press release
includes, but is not limited to, statements relating to (i) the
benefits expected to result from the acquisition of TNN and DFO by
Playmaker, (ii) the future performance of TNN and DFO, including
the achievement of certain earn-out targets and its continued
expansion and growth and (iii) other statements that are not
historical facts. Forward-looking information is based on a number
of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond Playmaker’s control, which
could cause actual results and events to differ materially from
those that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include, but are not
limited to: changes in general economic, business and political
conditions. Playmaker undertakes no obligation to update such
forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law.
ABOUT PLAYMAKER
Playmaker (TSX-V: PMKR) is a digital sports media company that
lives at the intersection of sports, betting, media and technology.
Playmaker is building a collection of premier sports media brands,
curated to deliver highly engaged audiences of sports fans to
sports betting companies, leagues, teams and advertisers.
For more information, visit: playmaker.fans or contact Playmaker
Chief Executive Officer Jordan Gnat via email jgnat@playmaker.fans.
To sign up for Playmaker’s Investor Alerts, visit:
playmaker.fans/investors.
ABOUT THE NATION NETWORK
The Nation Network is one of the largest North American online
destinations for independent NHL, MLB, and NBA coverage, including
breaking news, analysis, fantasy projections, and betting info. The
Nation Network’s content speaks for sports fans in the pub, the
locker room, and the office.
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