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SharpLink Gaming Announces Strategic Alternatives Process

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SharpLink Gaming (Nasdaq: SBET), an online performance-based marketing company in the U.S. sports betting and iGaming industries, has initiated a formal review process to evaluate strategic alternatives. The company's Board of Directors is considering multiple proposals, including potential sale, merger, or strategic business combination. This decision follows the strategic sale of their fantasy sports and sports games development businesses for $22.5 million in January 2024, elimination of interest-bearing debt, and redomestication from Israel to Delaware.

CEO Rob Phythian emphasized SharpLink's transformation into a pure-play, Nasdaq-listed affiliate marketing company with a strong balance sheet. The company aims to optimize operations, drive growth, and maximize shareholder value through this process. No deadline has been set, and there's no guarantee of a transaction resulting from this review.

Positive
  • Strategic sale of fantasy sports and sports games development businesses for $22.5 million in cash
  • Elimination of all interest-bearing debt
  • Transformation into a pure-play, Nasdaq-listed affiliate marketing company
  • Strong, clean balance sheet
  • Multiple proposals received for potential strategic alternatives
Negative
  • Uncertainty surrounding the outcome of the strategic alternatives review process
  • Potential changes in company structure or ownership that may affect current operations

Company Leadership Committed to Maximizing Shareholder Value Through Evaluation of Multiple Proposals

MINNEAPOLIS, July 18, 2024 (GLOBE NEWSWIRE) -- SharpLink Gaming, Inc. (Nasdaq: SBET) (“SharpLink” or the “Company”), an online performance-based marketing company serving the U.S. sports betting and iGaming industries, today announced that its Board of Directors (“Board”) has initiated a formal review process to evaluate strategic alternatives for the Company. The Board and management team are taking a measured approach to considering multiple proposals that have been received by the Company and other proposals it expects to receive.

SharpLink has been exploring strategic alternatives that include, but are not limited to, a sale, merger, strategic business combination or other transaction. SharpLink has not set a deadline or definitive timetable for completion of the strategic alternatives review process and there can be no assurance that this process will result in the Company pursuing a transaction or any other strategic outcome.

Rob Phythian, Chairman and CEO of SharpLink, stated “With the strategic sale of our fantasy sports and sports games development businesses in January 2024 to RSports Interactive for $22.5 million in cash and the elimination of all of our interest-bearing debt, coupled with the subsequent redomestication of our Company from Israel to Delaware and the appointment of a new Board comprised of truly world class business executives, SharpLink has transformed into a pure-play, Nasdaq-listed affiliate marketing company with a strong, clean balance sheet. As part of the Board’s efforts to evaluate strategic alternatives, it is advancing discussions with those prospects that we believe offer SharpLink the best opportunities to optimize our existing business operations, drive growth and create and maximize value for our shareholders.”  

SharpLink does not intend to make any further public comment regarding the review of strategic alternatives until a definitive agreement has been executed or the Company determines that disclosure is required by law or otherwise deemed appropriate.

About SharpLink Gaming, Inc.

Headquartered in Minneapolis, Minnesota, SharpLink is a trusted marketing partner to leading sportsbooks and online casino gaming operators worldwide. Through its iGaming affiliate marketing network, known as PAS.net, SharpLink focuses on driving qualified traffic and player acquisitions, retention and conversions to U.S. regulated and global iGaming operator partners worldwide. In fact, PAS.net won industry recognition as the European online gambling industry’s Top Affiliate Website and Top Affiliate Program for four consecutive years by both igamingbusiness.com and igamingaffiliate.com. SharpLink also owns and operates a portfolio of direct-to-player, state-specific, affiliate marketing websites designed to attract, acquire and drive local sports betting and online casino gaming traffic to its valued partners which are licensed to operate in each respective state. For more information, please visit www.sharplink.com.

Forward-Looking Statements

This release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business, the potential benefits of the Company’s products, services and technologies and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, government regulation of online betting, customer acceptance of new products and services, the demand for its products and its customers’ economic condition, the impact of competitive products and pricing, the lengthy sales cycle, proprietary rights of the Company and its competitors, general economic conditions and other risk factors detailed in the Company’s annual report and other filings with the SEC. The Company does not undertake any responsibility to update the forward-looking statements in this release.

CONTACT INFORMATION:
INVESTOR AND MEDIA RELATIONS
ir@sharplink.com


FAQ

What strategic alternatives is SharpLink Gaming (SBET) considering?

SharpLink Gaming is considering various strategic alternatives, including a sale, merger, strategic business combination, or other transactions. The company has received multiple proposals and expects to receive more as part of this review process.

How much did SharpLink Gaming (SBET) receive for selling its fantasy sports and sports games development businesses?

SharpLink Gaming sold its fantasy sports and sports games development businesses to RSports Interactive in January 2024 for $22.5 million in cash.

What major changes has SharpLink Gaming (SBET) undergone recently?

SharpLink Gaming has recently sold its fantasy sports and sports games development businesses, eliminated all interest-bearing debt, redomesticated from Israel to Delaware, and appointed a new Board of Directors. It has transformed into a pure-play, Nasdaq-listed affiliate marketing company.

Is there a set deadline for SharpLink Gaming's (SBET) strategic alternatives review process?

No, SharpLink Gaming has not set a deadline or definitive timetable for the completion of the strategic alternatives review process.

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Gambling
Services-prepackaged Software
Link
United States of America
MINNEAPOLIS