Financial news outlet CNBC says that Apollo Global Management, an investment firm focused on private equity, is in initial discussions with a number of sports wagering businesses regarding a possible agreement concerning Yahoo Sports. Apollo purchased Yahoo from Verizon in 2021 for $5 billion.
PointsBet Holdings, an Australian corporation with a market capitalization of about $760 million, is one of the businesses in talks with Yahoo. It is essential to understand that these are early conversations and an arrangement is not certain. Neither Yahoo, Apollo, nor PointsBet have provided statements.
Sources indicate, however, that this action could eventually lead to Yahoo Sports transforming into its own separate organization. It is probable that any newly formed company would continue utilizing the Yahoo brand.
CNBC points out that “Yahoo was an innovator of fantasy sports platforms and boasts millions of users who could be a prime demographic for legal sports wagering.”
Currently, legal mobile sports betting is operational in 19 states. The sector has experienced some moderation in recent months, though, as businesses have allocated significant resources to marketing and promotional efforts to acquire customers. This has resulted in increased expenses.
CNBC adds that smaller, publicly listed sports gambling firms such as Rush Street Interactive and PointsBet have faced challenges over the last year when compared to larger rivals like DraftKings, FanDuel, and BetMGM. Caesars’ William Hill, Rush Street’s BetRivers, and Fox Bet are also competing in the market.
An anonymous individual divulged confidential information, stating, “All parties are currently engaged in intense discussions. This business consolidation? It’s definitely proceeding.” CNBC reports that Apollo is contemplating leveraging the Venetian, the casino resort they acquired recently, to bolster Yahoo’s presence in the sports wagering market.
