Genius Sports Limited announced a definitive agreement to acquire Legend, a global digital sports and gaming media network, for up to $1.2 billion. The transaction will be funded with $900 million in cash at closing—$800 million in cash and $100 million in stock—plus an earn‑out of up to $300 million payable over two years, contingent on Legend meeting profitability and cash‑flow targets. The deal is expected to close in the second quarter of 2026.
Legend’s media network will broaden Genius’s FanHub fan‑activation platform, adding a highly engaged audience of 320 million annual visits and 118 million unique visitors in 2025. Integrating Legend’s marketing technology with GeniusIQ, the company’s AI‑powered data platform, will create new cross‑sell opportunities across betting, media and sports‑technology segments. The combination positions Genius as the only company operating at scale across official sports data, media and advertising, a strategic advantage that management says will accelerate fan monetization and data‑driven growth.
Pro‑forma financials for the combined entity project roughly $1.1 billion in revenue and $320‑$330 million in Adjusted EBITDA for 2026, with free‑cash‑flow conversion around 50%. Genius’s FY2025 group revenue of $669 million grew 31% YoY from $511 million in FY2024, and adjusted EBITDA rose 59% to $136 million. The acquisition is expected to be immediately accretive to Genius’s Group Adjusted EBITDA margins and free‑cash‑flow conversion, while maintaining at least a 20% Group Revenue CAGR through 2028. Management has raised its 2026 revenue guidance to $1.6 billion, implying a ~21% CAGR from 2026 to 2028, and the deal is financed in part by an $850 million Term Loan B issuance that keeps pro‑forma leverage below 3.0x.
Mark Locke, CEO of Genius Sports, said the deal “accelerates our strategic and financial objectives, supercharges fan monetization, and builds a fully integrated sports and gaming media network.” Nick Kisberg, founder of Legend, added that the partnership is “the right fit for scaling the business,” unlocking growth opportunities for partners and products on a stronger platform.
Shares of Genius Sports rose 3.3% in pre‑market trading and closed 3.89% higher at $8.54 on February 5, 2026. The positive market reaction was driven by the deal’s immediate accretive impact on margins, the raised 2026 guidance, and the creation of a unique integrated offering that expands revenue opportunities across data, media and betting.
The acquisition signals a long‑term shift toward a data‑driven media powerhouse. By combining Legend’s audience reach with Genius’s data and technology, the company can cross‑sell advertising, betting, and fan‑activation products, potentially unlocking higher margins and a stronger free‑cash‑flow profile. The deal also positions Genius to capture growth in the expanding sports‑betting and media markets, while the modest earn‑out structure and low leverage keep financial risk manageable. Overall, the transaction is expected to enhance Genius’s competitive position and accelerate its growth trajectory through 2028.
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