The Stars Group signs media partnership with FOX Sports
25-year deal includes FOX purchasing a $236m stake in The Stars Group
PokerStars operator The Stars Group has announced a major 25-year media partnership agreement with FOX Sports that will enable the operator to use certain FOX trademarks within its sports betting product in the US.
The deal will see the two firms launch a sportsbook in 2019 dubbed FOX Bet. The fixed-odds betting product will be launched in regulated states.
Part of the product will be a free-to-play (FTP) game through which players can predict the outcomes of games.
FOX will acquire 14.3 million Stars Group shares at a price of $16.4 each share as part of the deal. The Stars Group plans to use the $236m dollars made from the shares to pay outstanding debt.
FOX has a further option to acquire up to a 50% equity stake in the Stars Group’s U.S. business.
Stock update: $TSG is up more than 28 percent in after-hours trading following the announcement it signed a partnership with $FOX for social and real-money sports betting in the US.
— Matthew Waters (@FantiniMatt) May 8, 2019
The Stars Group CEO Rafi Ashkenazi said the partnership would position the operator to build a leading betting business in the US.
“Leveraging our proven media partnership strategy with Sky Sports in the UK, we are excited to partner with FOX Sports to integrate wagering into sports media and drive customer acquisition and retention in the U.S,” Ashkenazi said.
FOX Sports CEO Eric Shanks said: “FOX Sports is already synonymous with the best live sports events in the country and now we are expanding the way we immerse fans in the sports culture they love.
“Digital sports wagering represents a growing market opportunity that allows us to diversify our revenue streams, connect directly with consumers and expand the reach of the FOX Sports brand,” he added.
The deal marks the biggest media partnership with an operator in the U.S. thus far.