Genius Sports Limited (NYSE: GENI) announced Thursday that it has reached a definitive agreement to acquire Legend, a prominent digital sports and gaming media network, in a deal with a maximum valuation of $1.2 billion. This transaction includes an immediate payment of $900 million at closing, consisting of $800 million in cash and $100 million in stock, along with an earnout component potentially amounting to $300 million contingent upon meeting specific profitability and cash flow benchmarks.
The funding strategy for the acquisition is set to leverage an $850 million Term Loan B facility, with Genius Sports opting to keep its revolving credit line fully available by not drawing on this facility. Subject to standard closing conditions, the transaction is planned to finalize in the second quarter of 2026.
Legend operates a broad digital media platform centered on sports and gaming audiences. It employs advanced marketing technologies to monetize its expansive sports viewership while distributing content through significant sports news outlets such as Sports Illustrated and Yahoo Sports. In the year 2025 alone, Legend recorded approximately 320 million annual visits from 118 million unique users, with over 66% of these users returning regularly, indicating strong audience engagement.
By integrating Legend’s substantial and engaged audience, Genius Sports aims to bolster its media ecosystem, which hinges on delivering value to its extensive network of over 2,000 partners across sports, media, and betting sectors. This integration will be facilitated via FANHub, the first-ever sports fan activation platform, connecting global audiences and marketing technologies on a unified platform. The union of these assets is expected to provide a stable and recurring revenue source for Genius Sports.
Financially, the acquisition is anticipated to be accretive to both adjusted EBITDA margins and free cash flow conversion rates immediately upon closing. The consolidated entity is projecting a revenue CAGR of no less than 20% through 2028. For the fiscal year 2026, on a combined pro forma basis, the company expects to generate approximately $1.1 billion in revenue with adjusted EBITDA estimated between $320 million and $330 million. The free cash flow conversion is projected to be around 50% for that year.
Mark Locke, CEO of Genius Sports, commented on the development, emphasizing that the deal will improve margin profiles and generate stronger free cash flow. He expressed optimism about the company's ability to transform the market and expand its operational scale immediately following the acquisition.
Regarding financial performance projections, Genius Sports anticipates revenues of $669 million for 2025, exceeding consensus estimates by a margin, and marking a 31% growth year-over-year. The adjusted EBITDA is forecasted to reach $136 million for the same period, representing a 59% increase, with a margin of 20%. At the close of 2025, the company reported $281 million in cash and cash equivalents.
Looking ahead, the standalone outlook for 2026 includes expected revenues in the range of $810 million to $820 million and adjusted EBITDA of $180 million to $190 million. Adding Legend’s business through acquisition and integration is projected to enhance the company’s performance trajectory further, specifically improving its revenue base and accelerating the monetization of its global media inventory by 2028. The longer-term forecasts include reaching approximately $1.6 billion in revenue by 2028, representing an average annual growth rate near 21% from 2026, alongside an adjusted EBITDA margin close to 35% and a free cash flow conversion rate of at least 60%.
Despite the positive projections, Genius Sports shares experienced a slight decline in early trading following the announcement, reflecting the market's initial reactions and appraisal of the deal's financial structure and integration risks.