Financial news outlet CNBC reveals that Apollo Global Management, the private investment firm that acquired Yahoo from Verizon in 2021 for a hefty $5 billion, is engaging in preliminary discussions to combine Yahoo Sports with a sports wagering enterprise. Insiders indicate that Yahoo has been communicating with numerous entities, including PointsBet Holdings, an Australian corporation presently assessed at roughly $760 million.
It is crucial to emphasize that these dialogues are in the nascent phase, and no agreement is certain. Neither Yahoo, Apollo, nor PointsBet have issued statements regarding the speculation.
Nevertheless, sources propose that this action could result in Yahoo Sports being divested, with any newly established entity likely preserving the Yahoo trademark. As CNBC observes, “Yahoo was a trailblazer in fantasy sports utilities and possesses millions of subscribers who could be ideal prospects for lawful sports gambling.”
At present, nineteen states in the United States have authorized mobile sports betting. However, the sector has become exceptionally competitive, with prominent contenders like DraftKings, FanDuel, and BetMGM investing significantly in advertising and incentives to entice patrons. Smaller firms like PointsBet are experiencing the strain, and a collaboration with a brand like Yahoo could be a method to differentiate themselves in a saturated market.
An anonymous leader in the gaming industry remarked that the entire sector is currently evaluating the landscape, implying a necessary contraction is on the horizon. This follows Apollo Global Management’s purchase of the Venetian Resort in the previous month, an action that CNBC speculates might create opportunities for joint marketing between the Venetian and Yahoo Sportsbook.