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Horizon Acquisition Corp SPAC Jumps 20% On Potential Sportradar Merger

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Horizon Acquisition Corp SPAC Jumps 20% On Potential Sportradar Merger

A sports data company is reportedly in talks to go public via a SPAC deal that could value the company at more than $10 billion.

What Happened: Sportradar is in talks to go public via a SPAC merger with Horizon Acquisition Corp II (NYSE: HZON), according to Bloomberg.

Sportradar provides data from sports contests to sports betting providers. The company had deals in place with the big four U.S. sports last year with MLB, NBA, NFL and NHL. Sportradar also has a deal with the International Tennis Federation.

The deal with the NFL was an exclusive deal that is now set to expire, according to The Athletic. The NFL invested in Sportradar in both 2015 and 2019.

Investors in Sportradar include the Canada Pension Plan Investment, Michael Jordan, Mark Cuban and Revolution Growth.

Sportradar could be valued at between $10 billion and $12 billion, according to SportsHandle.

Related Link: DraftKings And Dish Network Partner On Sports Betting, TV Integration

Why It’s Important: The deal with Horizon Acquisition Corp II could position Sportradar to keep close ties with the professional sports leagues and a major sports betting operator.

Horizon Acquisition Corp II is led by Todd Boehly, an owner of MLB’s Los Angeles Dodgers. DraftKings Inc (NASDAQ: DKNG) CEO and Co-Founder Jason Robbins is also a member of the SPAC team.

Sportradar has investments from Jordan and Cuban who own NBA teams and Revolution Growth, which counts Ted Leonsis, who owns NBA and NHL teams, as a partner. Leonsis serves on the NHL executive committee. 

See also: How to Invest in SPACs How to Invest in SPACs

The relationships with these owners could help Sportradar sign and renew deals with major sports.

The involvement of Boehly, who is an investor in DraftKings, and Robbins could also lead to a stronger relationship between Sportradar and the sports betting operator.

Sportradar rival Genius Sports is set to merge in a SPAC deal with dMY Technology Group Inc II (NASDAQ: DMYD). Genius Sports counts DraftKings as a customer.

Price Action: Shares of Horizon Acquisition Corp II are up 17% to $11.79. Shares of dMY Technology Group Inc II are down 2% to $18.95.

 

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