As companies scramble to reach economies of scale that will make it somewhat easier to compete with market leaders FanDuel and DraftKings, the big fantasy sports providers in Canada all seem to be acquisition targets. Here are three big deals so far in 2015:
Publicly traded DraftTeam was taken over by Calgary-based Sabre Graphite Corp. in March. Just three months later, that company was involved in a reverse takeover (pending shareholder approval) by California-based FantasyAces LLC. It’s a move insiders say makes financial sense for DraftTeam — although its brand will disappear in favour of the FantasyAces brand.
Toronto-based Fantasy Feud Inc. in June was rolled into Toronto-based Gaming Nation Inc., which also includes Thornhill, Ont.-based electronic raffle operator 5050 Central, and U.S-based fantasy sports content provider FantasyGuru.com and handicapping service Pick Nation.
Square Labs, a privately owned $100-million Vancouver-based investment company, in July purchased a majority stake in Pro Draft League (since rebranded as Fantasy6). “It’s better to have a smaller piece of a watermelon rather than the majority piece of a grape,” says co-founder Mark Tadros.