Digital sports media company Playmaker announced on Tuesday that it acquired Cracks, the leading Mexico-based video-first sports platform.
Playmaker Acquires 100% Of Cracks for $1.7M
The acquisition with an aggregate consideration of up to $1.7 million marks an important step for Playmaker that expands its content suite. Founded by Manuel Bravo, Cracks is one of the most popular digital channel platforms in Mexico and Latin America. The digital assets of the platform have a total audience across all channels of more than 12.6 million subscribers worldwide.
Under the terms of the acquisition, Playmaker has acquired 100% of the digital assets, as well as marks and copyright of Cracks. The acquisition features an initial cash payment of $0.4 million upon closing. Additionally, the seller would receive up to $1.3 million after passing specific performance-related targets and milestones set for the 12 months after closing.
The Deal Includes Significant Digital Assets
Currently, Cracks’ flagship YouTube channel, Cracks Global, has nearly 5.5 million subscribers. Moreover, it has accumulated more than 2.7 billion lifetime views. In other words, this means that each video of the channel has an average of 502,000 views, ranking Cracks Global in the 15th place from the Top 50 sports channels by subscribers on YouTube.
On the other hand, Cracks’ other digital assets include 2.9 million followers on Facebook and 1.1 million followers on Instagram. Cracks also has some 818,000 followers on TikTok, 203,000 followers on Twitter, and 46,000 followers on Twitch.
Considering Cracks’ digital assets, the acquisition will undoubtedly help expand Playmaker’s social media. Moreover, the deal complements the company’s ongoing expansion into Latin American and US Hispanic markets. Only recently, Playmaker acquired Grupo SuperPoker that operates in Brazil, as well as Varsky Sports that operates in Argentina. Continuing to expand its media reach, Playmaker also acquired Futmarketing.
The Acquisition Will Bring Benefits
Cracks’ founder, Manuel Bravo, acknowledged that starting from an amateur project, the company has been growing significantly despite its limitations. He explained that in the beginning, the team’s focus was creating high-quality content but in the end, the focus shifted to “becoming leaders and a point of reference in the industry.” In conclusion, Bravo said that undoubtedly, the acquisition will help further boost Cracks’ content quality which will bring benefits for the audience.
“Cracks’ story is one of passion, persistence and professionalism, led by “Manu” since the company’s inception.”
Federico Grinberg, EVP at Playmaker
Playmaker’s EVP and CEO of Futbal Sites, a Playmaker brand, Federico Grinberg, outlined that since Cracks’ creation, the company was led by persistence and professionalism. He explained Playmaker is thrilled about the acquisition and that Cracks creates an entirely new revenue stream for the company. Grinberg outlined that the acquisition will boost Playmaker’s “commercial offering by bringing an original product and adding the talented Cracks staff” to its team.