Genius Sports said it is acquiring Legend in a transaction valued at up to $1.2 billion, including $900 million payable at closing and an earnout of up to $300 million.
- For Genius Sports, the transaction is expected to be immediately accretive to group adjusted core profit and free cash flow conversion.
- Genius Sports said its prelim group revenue for FY25 is of $669 million, reflecting 31% year-on-year growth.
- It also expects to generate group revenue of approximately $810-820 million in FY26.
Genius Sports (GENI) shares plunged on Thursday after it announced it has entered into a definitive agreement to acquire Legend, a global, digital sports and gaming media network.
Shares plunged 26.5% to $6.28 at the time of writing and garnered retail chatter around the deal.
Deal Details
Genius Sports said it is acquiring Legend in a transaction valued at up to $1.2 billion, including $900 million payable at closing and an earnout of up to $300 million.
For Genius Sports, the transaction is expected to be immediately accretive to group adjusted core profit margins and free cash flow conversion while maintaining at least 20% group revenue compound annual growth rate (CAGR) through 2028.
On a 2026 annualized pro forma basis; after giving effect to the acquisition, the combination is expected to position Genius to achieve approximately $1.1 billion in group revenue, $320-330 million in group adjusted core profit with approximately 50% free cash flow conversion.
“This deal accelerates our strategic and financial objectives, supercharges fan monetization, and builds a fully integrated sports and gaming media network,” said Mark Locke, CEO of Genius Sports.
Prelim FY25 Earnings And FY26Outlook
The company on Thursday also reported its preliminary unaudited financial results for the fiscal year ended December 31, 2025. It said its prelim group revenue is $669 million, reflecting 31% year-on-year growth.
Genius Sports also expects to generate group revenue of approximately $810-820 million, and group adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $180-190 million in 2026 on a standalone basis.
Group Revenue of $1.6 billion, representing approximately 21% compound annual growth rate (CAGR) from 2026 to 2028, as the acquisition and integration of Legend will also set a higher performance benchmark for 2028, it said in a statement.
How Did Stocktwits Users React?
Retail sentiment around GENI trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume.
One user on Stocktwits opined that they are not sure that GENI needed to inject this risk as its business was doing well.
Another user said they were not expecting the company to strike a more than $1billion worth deal.
Shares in the company have fallen 34% over the past 12 months.
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