NHL could be taking up to $90 million or 1.8 percent of sportsradar equity stake in its initial public offering (IPO). Earlier in July, NHL and Switzerland-based Sportsradar reached a ten-year agreement that includes being given the right to betting data, streaming right, and the right to partner with NHL.
The IPO filing came out two months after a Sportradar and Special purpose acquisition company (SPAC), Horizon Acquisition Corp. II ended a transaction that would have enabled Sportradar to go public.
As part of the agreement, NHL can acquire Sportradar stock in three ways-one by purchasing 2, 127 shares for $4, 674. According to a Security Exchange Commission (SEC) document, NHL also can buy shares worth $30 million at market prices or acquire 2, 668 Sportradar shares for $12, 234.
At long last, the NHL stake at the betting and streaming company could be worth $90 million, implying a $6.5 billion valuation of the company. Sportradar is yet to reveal the amount it seeks to raise, but if its valuation is $6.5 billion, it would be well above rival Genius Sports, which has a $3.78 billion in market capitalization.
There is also speculation that the Swiss company could be valued more, some estimating $10 to $12 billion. Three years ago, Sportsradar’s private market valuation stood at $2.4 billion. By then, sports betting was still illegal in the US.
Expectations are high that sports betting will be soaring in the US, and Sportradar is striking at the right moment with its IPO. There are plenty of growth room in the US, and Sportradar move isn’t uncommon. Genius Sports (NYSE: GENI) has already signed a six-year data agreement with NFL.