Streaming Unicorn: Deltatre Seeks Sale Topping $1 Billion

(Bloomberg) -- Bruin Sports Capital, seeking to capitalize on the groundswell of streaming in sports and entertainment, is exploring strategic options for its media and technology company Deltatre, including a possible sale, according to people familiar with the matter.

Bruin, the sports and entertainment firm run by former Nascar and IMG executive George Pyne, is working with advisers on options that include a sale valuing the company at $1 billion or more, said the people, who asked not to be identified because the matter is private.

Deltatre is a streaming-services provider to big players in sports and entertainment, including the National Football League, UEFA and Discovery Inc. Sports and entertainment companies have been buying such companies to cut out middlemen and offer content directly to consumers.

Last year, Walt Disney Co., the owner of ESPN, acquired a controlling stake in BAMTech, the tech company formed by Major League Baseball, in a deal that valued the company at $3.75 billion. Endeavor Group Holdings Inc., which owns UFC and Professional Bull Riders, bought the streaming technology firm NeuLion for $250 million in March 2018.

Deltatre, based in Turin, Italy, has been a buyer, too, purchasing Massive Interactive, an over-the-top, or OTT, software company, for $92 million in cash last year.

Bruin, which acquired Deltatre in 2016 for about $160 million, declined to comment. Deltatre’s revenue is comparable to sales at BAMTech, now known as Disney Streaming Services, one of the people said, without being specific.

Ad Prize

The benefits for moving online are younger audiences, subscription fees and a soaring potential for ad sales. Traditional TV outlets in the U.S. may lose as much as $15 billion in advertising revenue to streaming by 2024, according to Bloomberg Intelligence.

Bruin may use proceeds from a sale to fund acquisitions. Last month, Deltatre’s parent raised $600 million from CVC Capital Partners and the Jordan Co. to fuel expansion. The deal is part of a wider accord that could ultimately provide Bruin with billions in capital, the firm has said.

Bruin’s portfolio companies also include On Location Experiences, a high-end events business partly owned by the NFL. Endeavor was nearing an agreement to acquire On Location earlier this year but a deal hasn’t been completed.

©2019 Bloomberg L.P.

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