Leading online ticket retailer, Vivid Seats is getting into the gaming industry.
The Chicago-based company recently completed its acquisition of daily fantasy sports (DFS) operator Betcha Sports, Inc. for $25 million.
Vivid Seats CEO, Stan Chia, said the deal would deliver a unique experience for Vivid Seats’ customers.
“The acquisition of Betcha further strengthens our position as a leading marketplace, accelerating our journey into naturally adjacent areas,” Chia said in a statement.
“We have been incredibly impressed with their continued growth and are excited to welcome the Betcha team to Vivid Seats. Furthermore, as we combine their new way to play with our desire for fans everywhere to experience it live. We believe this acquisition can significantly increase our TAM. In addition, allowing for customer acquisition synergies with our high interest fan base. I look forward to leveraging our collective expertise and passion to drive enhanced fan engagement through discovery, loyalty, and content to deliver outstanding customer experiences.”
Although the release of specifics has been unclear, the purchase price is worth $25 million in Vivid Seats equity, with additional payments of up to $40 million of earnouts payable in a mix of cash and equity.
As of writing, $SEAT was trading at $9.83 per share.
The deal will allow millions of Vivid Seats customers to participate in DFS. In addition to extending the company’s marketplace technology into the online gaming sector.
Hanson Wong, Chief Executive Officer of Betcha Sports, had this to say:
“Vivid Seats and Betcha share a mutual commitment to helping fans experience the thrill of live events combined with a new and innovative, yet simple way to play. We could not have found a better partner than Stan and the Vivid Seats team, as we introduce a new gaming experience to millions of Vivid Seats customers.”
Expect more details to be released during the company’s fourth-quarter earnings call.