Playmaker Acquires Video-First Media Platform Cracks, YouTube’s Largest Spanish-Language Sports News Channel

Rhea-AI Summary

Playmaker Capital Inc. (TSXV: PMKR; OTCQX: PMKRF) has acquired the video-first sports platform Cracks, enhancing its portfolio in digital sports media. Cracks boasts over 12.6 million combined subscribers across platforms, with a significant YouTube presence. The $1.7 million acquisition includes a $400,000 initial payment, followed by performance-based payments. This deal aims to capitalize on original video content creation and monetization, targeting the Latin American and U.S. Hispanic markets, aligning with Playmaker's strategic growth objectives.

Positive

• Acquisition of Cracks adds over 12.6 million combined subscribers, enhancing audience reach.
• Generates new revenue streams through original video content and monetization on platforms like YouTube and Facebook.
• Strengthens Playmaker's position in the Latin American and U.S. Hispanic markets.
• Enhances partnerships and content creation opportunities during major events like the FIFA World Cup.

Negative

• The cash payment of $1.7 million could strain Playmaker's short-term liquidity.
• Performance-related payments may create uncertainty around future financial obligations.

Cracks’ total digital audience exceeds 12.6 million combined subscribers across YouTube, Facebook, Instagram, Twitter, TikTok, and Twitch; includes more than seven million YouTube subscribers of global and regional soccer-centric channels; differentiates Playmaker’s content suite with first video-focused platform

TORONTO--(BUSINESS WIRE)-- Playmaker Capital Inc. (TSXV: PMKR; OTCQX: PMKRF) (“Playmaker”), the digital sports media company that delivers authentic content experiences through its portfolio of sports media and technology brands, announced today the acquisition of Mexico-based video-first sports platform, Cracks. Cracks is a soccer-centric collection of digital media assets that has a total audience across all channels in excess of 12.6 million subscribers worldwide, including the most followed Spanish-language sports news channels on YouTube (Cracks Global Edition, Cracks Mexico, Cracks Colombia, and Cracks Argentina).

Cracks, a Playmaker Brand (Graphic: Business Wire)

Cracks Global, its flagship YouTube channel, has nearly 5.5 million subscribers and has attracted more than 2.7 billion lifetime views on YouTube. Based on January 7, 2022 data, Cracks Global generates an average of 502,000 views per video, which ranks 15^th amongst the top-50 sports channels by subscribers on YouTube globally. Across the entire Cracks YouTube portfolio, including Cracks Global, Cracks Mexico, Cracks Colombia, and Cracks Argentina, there are over 7 million active subscribers.

Cracks, originally founded by Guadalajara-native Manuel Bravo, one of the most prominent YouTuber’s in Mexico and Latin America, also significantly increases Playmaker’s social media following across other key social channels. Cracks reaches 2.9 million followers on Facebook, 1.1 million followers on Instagram, 203,000 followers on Twitter, 818,000 followers on TikTok, and 46,000 followers on Twitch.

The acquisition of Cracks establishes video production and monetization as a new centre of excellence for Playmaker, complementing its existing robust in-house editorial expertise across its multiple web properties, social media channels, mobile apps, and fan pages. The acquisition will also provide additional opportunities for enhanced partnerships, including the creation of on-premise original content created during the 2022 FIFA World Cup in Qatar featuring Manuel Bravo as lead talent.

“Cracks’ story is one of passion, persistence and professionalism, led by “Manu” since the company’s inception. We are thrilled that he chose Playmaker to take Cracks to the next level,” commented Federico Grinberg, EVP of Playmaker and CEO of Futbol Sites, a Playmaker brand. “Cracks will give us access to a completely new revenue stream: original video creation and monetization through syndication on third-party platforms, mainly YouTube and Facebook. This acquisition will enrich our commercial offering by bringing an original product and adding the talented Cracks staff to our team, providing Playmaker the opportunity to offer much more powerful branded content solutions to our advertisers.”

“Cracks started as an amateur project that maintained a continuous upward growth trajectory despite its limitations,” commented Bravo. “Since the platform was created, our team’s job transitioned from creating high-quality and entertaining content to becoming leaders and a point of reference in the industry. Now that Playmaker is acquiring Cracks, we will not only continue to be leaders in our field but can also aspire to make a leap in quality across the board. Ultimately, we are confident our audience will benefit, as we continue to build the best possible version of Cracks.”

In line with one of Playmaker’s goals to be the definitive digital sports media destination for the Latin American and US Hispanic markets, Playmaker has now acquired four Latin American-based organizations since November, 2021, including Varsky Sports (Argentina), Grupo SuperPoker (Brazil), Futmarketing (Brazil), and Cracks (Mexico). These businesses will be operated by the Futbol Sites leadership team. Playmaker’s aspiration to be the premier source of sports content in Latin America and the U.S. Hispanic market mirrors its efforts in North America. In 2021, Playmaker acquired Yardbarker (USA) and The Nation Network (Canada).

TRANSACTION DETAILS
Pursuant to the terms of an asset purchase agreement, Playmaker acquired 100% of the digital assets, marks and copyright of Cracks for aggregate consideration of up to US$1.7 million. The purchase price consideration consisted of (i) a cash payment of US$0.4 million on closing, and (ii) cash payments of up to a maximum of US$1.3 million payable to the seller upon Cracks achieving certain milestones and performance related targets over the 12-months following closing.

TSX VENTURE EXCHANGE DISCLAIMER
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Playmaker’s current expectations regarding future events. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Specific forward-looking information contained in this press release includes, but is not limited to, statements relating to (i) the benefits expected to result from the acquisition of Cracks by Playmaker, (ii) the future performance of Cracks, including the achievement of certain targets and its continued expansion and growth and (iii) other statements that are not historical facts. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Playmaker’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions. Playmaker undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

ABOUT PLAYMAKER
Playmaker (TSXV: PMKR; OTCQX: PMKRF) is a digital sports media company that lives at the intersection of sports, betting, media and technology. Playmaker is building a collection of premier sports media brands, curated to deliver highly engaged audiences of sports fans to sports betting companies, leagues, teams and advertisers.

For more information, visit: playmaker.fans or contact Playmaker Chief Executive Officer Jordan Gnat via email jgnat@playmaker.fans. To sign up for Playmaker’s Investor Alerts, visit: playmaker.fans/investors.

ABOUT CRACKS
Cracks is the largest and most followed Spanish-language sports news channel on YouTube. Covering soccer-related news, player signings, statistics, off the field stories, and everything soccer fans want to know about their favourite clubs and athletes. Cracks engages with fans across multiple platforms, boasting strong subscriber bases on YouTube, TikTok, Twitter, Instagram, Facebook, and Twitch.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220111005558/en/

MEDIA

Mauricio Villarreal - mauricio@redknotcomms.com | (+1) 919 808 8898

Tom Webb - tom@redknotcomms.com | (+1) 512 952 9369

Romilly Evans - rom@redknotcomms.com | (+44) 7766 752 274

Source: Playmaker Capital Inc.

FAQ

What is the impact of Playmaker's acquisition of Cracks on the company?

The acquisition enhances Playmaker's audience reach and revenue opportunities through original video content.

How much did Playmaker pay for Cracks?

Playmaker acquired Cracks for a total consideration of up to $1.7 million.

When was the acquisition of Cracks completed?

The acquisition was announced on January 7, 2022.

What are the future goals for Playmaker after acquiring Cracks?

Playmaker aims to expand its presence in digital sports media specifically for Latin American and U.S. Hispanic markets.

What new audience does Playmaker target with the Cracks acquisition?

Playmaker targets the digital sports audiences in the Latin American and U.S. Hispanic markets.