Better Collective Announces Over 100 Layoffs
Better Collective, the parent company of Playmaker HQ and Action Network, has decided to lay off over 100 employees. This decision was announced by Better Collective CEO Jesper Søgaard on LinkedIn after the company adjusted its 2024 financial goals.
Reasons Behind the Layoffs
Multiple factors led to Better Collective’s decision to downsize. Among them are declining performance, “shifts in the U.S. market,” and a “prolonged slowdown” related to upcoming regulations in Brazil, with new legislation expected to take effect only next year.
A significant factor driving this reduction was a recent challenge for many affiliate companies—Google’s search algorithm changes, which caused a drop in search rankings for several mid-sized websites acquired by Better Collective. The value of these sites relied heavily on organic search traffic to direct readers to partnered betting operators.
It is possible that the prices paid for these sites may have been overestimated, particularly given the broad shifts in digital media, where many sites face challenges in monetizing readership.
Stock Price Decline
Better Collective’s stock dropped 36.5% in the week leading up to the layoffs, reaching $13.08. This decline followed the company’s reduction of its 2024 financial forecast by approximately 10%.
Additionally, sources report that Better Collective’s shares have fallen from a 52-week high of $30.00 in February to a 52-week low of $12.52 at the beginning of the layoff announcement week.
It is inferred that layoffs, as a response to financial challenges, have impacted investor sentiment negatively. The forecast reduction and job cuts may have signaled deeper issues within the company, contributing to the share price decline.
Better Collective’s Assets
Better Collective owns several media platforms, including Playmaker HQ, a popular podcast platform featuring stars such as Shaquille O’Neal, Angel Reese, and Marshawn Lynch. The company also owns the sports betting site Action Network. Layoffs could potentially impact Playmaker HQ and its numerous shows.
In partnership with The Big Podcast Network, Playmaker HQ recently signed Angel Reese to host “Unapologetically Angel.” Playmaker HQ is also behind “The OGs” podcast hosted by Udonis Haslem and Mike Miller.
At the end of 2023, the company employed 1,211 staff.
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