PrizePicks Hires Moelis & Co. to Explore Merger and Acquisition Opportunities

Company Background

Founded in 2017 by Adam Wexler, a former digital strategy consultant for the Atlanta Hawks, PrizePicks has its headquarters in Atlanta. The company has seen rapid growth and gained significant attention in the DFS market.

In 2021, PrizePicks secured a funding round that attracted notable investors, including Atlanta Falcons quarterback Matt Ryan and Olympic gymnast Gabby Douglas. This infusion of capital has likely bolstered the company’s expansion efforts and enhanced its market positioning.

The company has carved out a niche in the market by targeting younger adults. It actively engages this demographic through a dedicated channel on the Discord chat app, which boasts over 448,000 members. This approach has helped PrizePicks build a loyal and engaged user base.

Potential M&A Opportunities

Multiple sources report that PrizePicks does not intend to sell off its assets but rather is seeking advantageous options in the M&A market. It is suggested that the company aims to strengthen and expand its technological division, which is crucial for development in the DFS sector.

There is also a possibility that PrizePicks plans to venture into the OSB market, which could be facilitated by finding a suitable partner.

This move might also be a response to the strategies of the leading OSB operators in the country, who are in discussions with state authorities about the legal status of products offered by companies like PrizePicks and Underdog Sports.

At this moment, drawing definitive conclusions is challenging. The only reliable information appears to be Bloomberg’s report indicating that PrizePicks has entered a period of expansion. The rest remains speculative, based on information from anonymous sources.