Genius Sports' Acquisition of Legend Boosts Stock by Over 10%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GENI?
Source: seekingalpha
- Strategic Acquisition Defense: Genius Sports CEO Mark Locke defended the acquisition of Legend in a letter to shareholders, asserting that it represents a participation layer built on two decades of technological investment, enhancing the company's competitive edge in the sports and iGaming sectors.
- Significant User Engagement: In 2025, Legend achieved 320 million visits from 118 million unique users, with over two-thirds of these users returning regularly, indicating strong user loyalty and market potential.
- Reasonable Financial Valuation: Locke noted that Genius Sports acquired Legend for just over six times pre-earnout EBITDA, a deal that not only boasts global scale and strong cash flow but also leverages over $300 million in technology investment and advanced data modeling capabilities.
- Strong Wall Street Support: Genius Sports enjoys robust backing on Wall Street, with 15 out of 16 analysts providing bullish ratings, reflecting confidence in the company's future growth prospects.
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Analyst Views on GENI
Wall Street analysts forecast GENI stock price to rise
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 5.790
Low
13.00
Averages
16.00
High
20.00
Current: 5.790
Low
13.00
Averages
16.00
High
20.00
About GENI
Genius Sports Limited is the official data, technology and broadcast partner that powers the ecosystem connecting sports, betting and media. It operates through one segment, which consists of providing access to Betting Content Technology, Content and Services; Media Technology Content and Services; and Sports Technology and Services. It builds and supplies technology and services that allow sports leagues to collect, analyze and monetize their data with added tools to deepen fan engagement. It provides sports leagues with bespoke monitoring technology and education services to help protect their competitions and athletes from the threats of match fixing and betting-related corruption. It offers official data, outsourced bookmaking, trading/risk management services and live audio-visual game content that is derived from its streaming partnerships with sports leagues. Its offerings include Live sports data, Pre-game and in-game odds feeds, and BetVision, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Genius Sports' Acquisition of Legend Boosts Stock by Over 10%
- Strategic Acquisition Defense: Genius Sports CEO Mark Locke defended the acquisition of Legend in a letter to shareholders, asserting that it represents a participation layer built on two decades of technological investment, enhancing the company's competitive edge in the sports and iGaming sectors.
- Significant User Engagement: In 2025, Legend achieved 320 million visits from 118 million unique users, with over two-thirds of these users returning regularly, indicating strong user loyalty and market potential.
- Reasonable Financial Valuation: Locke noted that Genius Sports acquired Legend for just over six times pre-earnout EBITDA, a deal that not only boasts global scale and strong cash flow but also leverages over $300 million in technology investment and advanced data modeling capabilities.
- Strong Wall Street Support: Genius Sports enjoys robust backing on Wall Street, with 15 out of 16 analysts providing bullish ratings, reflecting confidence in the company's future growth prospects.
See More
Genius Sports Partners with WPP Media to Enhance Sports Advertising
- Launch of Data-Driven Tool: Genius Sports (GENI) partners with WPP Media to introduce the WPP Brand Sports Momentum Score, leveraging an individual-level dataset of over 250 million U.S. consumers to help brands invest more precisely in sports advertising.
- Precise Audience Targeting: By integrating Fan Graph and the FANHub advertising platform, WPP Media clients can build custom audiences and deploy sponsorships across direct and programmatic channels, ensuring ad spend is closely linked to tangible business outcomes.
- Joining Innovation Council: WPP Media joins the Genius Sports Innovation Council, collaborating with leagues, teams, and broadcasters to develop next-generation sports advertising solutions, driving the implementation of augmented broadcasts, personalized marketing, and immersive fan experiences.
- Market Reaction: Despite Genius Sports (GENI) shares being down over 40% year-to-date, this partnership is expected to enhance the effectiveness of brand advertising investments by providing precise audience insights and outcome-driven measurement.
See More
Genius Sports Announces $1.2 Billion Acquisition of Legend
- Deal Details: Genius Sports announced the acquisition of Legend for up to $1.2 billion, with $900 million payable at closing and an earnout of $300 million, which is expected to immediately enhance group adjusted core profit margins and free cash flow conversion.
- Revenue Outlook: The company anticipates preliminary group revenue of $669 million for FY25, reflecting a 31% year-on-year growth, and expects FY26 revenue to reach approximately $810-820 million, indicating strong growth potential.
- Financial Targets: Post-acquisition, Genius Sports expects to achieve approximately $1.1 billion in group revenue and $320-330 million in adjusted core profit in 2026, with an anticipated free cash flow conversion rate of about 50%, driving long-term growth.
- Market Reaction: Despite the strategic nature of the deal, Genius Sports' shares plunged 26.5% following the announcement, reflecting market concerns about the acquisition, with the stock down 34% over the past 12 months.
See More
Genius Sports' Acquisition of Legend Triggers Stock Plunge
- Massive Acquisition Deal: Genius Sports announced its acquisition of digital sports and gaming media network Legend for up to $1.2 billion, including $800 million in cash and $100 million in stock, which represents 80% of its $1.5 billion market cap, raising concerns about its financial health.
- Profitability Concerns: Despite the large deal size, Genius Sports has yet to achieve profitability, leading to a 23% drop in stock price following the announcement, as investors express skepticism about its future earnings potential.
- Optimistic Business Integration: With Legend's array of media brands and premium content partnerships with Yahoo! Sports and Sports Illustrated, the combined company is expected to see sales double from $669 million in 2025 to $1.6 billion by 2028, indicating strong market potential.
- NFL Stake Boosts Confidence: Given that the NFL holds a 10% stake in Genius Sports and has an exclusive partnership through 2029, there remains optimism about Genius Sports' long-term prospects, with expectations of generating $160 million in free cash flow in 2026.
See More
Genius Sports to Acquire Legend in $1.2 Billion Deal
- Acquisition Overview: Genius Sports announced an agreement to acquire Legend for up to $1.2 billion, with $900 million payable at closing, consisting of $800 million in cash and $100 million in stock, plus a potential earnout of up to $300 million tied to profitability and cash flow targets, expected to close in Q2 2026.
- User Base Integration: In 2025, Legend attracted 320 million annual visits from 118 million unique users, with over two-thirds returning regularly, and this acquisition is expected to integrate this highly engaged sports and gaming audience into Genius Sports' media ecosystem, providing a reliable revenue stream.
- Enhanced Financial Outlook: The acquisition is projected to be immediately accretive to adjusted EBITDA margins and free cash flow conversion, supporting a revenue CAGR of at least 20% from 2026 to 2028, with the combined company expected to achieve approximately $1.1 billion in revenue and $320–330 million in adjusted EBITDA for 2026.
- Market Transformation Potential: CEO Mark Locke stated that the acquisition will drive higher margins and stronger free cash flow, positioning Genius Sports to immediately transform the market and grow the size and scale of its business, with projected revenue reaching $1.6 billion by 2028 and an adjusted EBITDA margin of around 35%.
See More
Genius Sports Acquires Legend for Up to $1.2B
- Large Transaction Value: Genius Sports announced the acquisition of digital sports and gaming media network Legend for up to $1.2 billion, with $900 million payable at closing and an additional $300 million earnout, reflecting the company's confidence in future growth.
- Strong User Base: In 2025, Legend achieved 320 million annual visits from 118 million unique visitors, with over two-thirds of users returning regularly, providing Genius Sports with rich user data and potential revenue streams.
- Significant Financial Impact: The acquisition is expected to be immediately accretive to the company's adjusted EBITDA margins and free cash flow conversion while maintaining at least a 20% CAGR in group revenue, indicating a robust financial outlook.
- Accelerated Strategic Goals: Genius Sports CEO Mark Locke stated that this deal accelerates the company's strategic and financial objectives, enhances fan monetization, and builds a fully integrated sports and gaming media network, driving higher margins and stronger cash flow.
See More
Genius Sports' Acquisition of Legend Boosts Stock by Over 10%
- Strategic Acquisition Defense: Genius Sports CEO Mark Locke defended the acquisition of Legend in a letter to shareholders, asserting that it represents a participation layer built on two decades of technological investment, enhancing the company's competitive edge in the sports and iGaming sectors.
- Significant User Engagement: In 2025, Legend achieved 320 million visits from 118 million unique users, with over two-thirds of these users returning regularly, indicating strong user loyalty and market potential.
- Reasonable Financial Valuation: Locke noted that Genius Sports acquired Legend for just over six times pre-earnout EBITDA, a deal that not only boasts global scale and strong cash flow but also leverages over $300 million in technology investment and advanced data modeling capabilities.
- Strong Wall Street Support: Genius Sports enjoys robust backing on Wall Street, with 15 out of 16 analysts providing bullish ratings, reflecting confidence in the company's future growth prospects.
See More
Genius Sports Partners with WPP Media to Enhance Sports Advertising
- Launch of Data-Driven Tool: Genius Sports (GENI) partners with WPP Media to introduce the WPP Brand Sports Momentum Score, leveraging an individual-level dataset of over 250 million U.S. consumers to help brands invest more precisely in sports advertising.
- Precise Audience Targeting: By integrating Fan Graph and the FANHub advertising platform, WPP Media clients can build custom audiences and deploy sponsorships across direct and programmatic channels, ensuring ad spend is closely linked to tangible business outcomes.
- Joining Innovation Council: WPP Media joins the Genius Sports Innovation Council, collaborating with leagues, teams, and broadcasters to develop next-generation sports advertising solutions, driving the implementation of augmented broadcasts, personalized marketing, and immersive fan experiences.
- Market Reaction: Despite Genius Sports (GENI) shares being down over 40% year-to-date, this partnership is expected to enhance the effectiveness of brand advertising investments by providing precise audience insights and outcome-driven measurement.
See More
Genius Sports Announces $1.2 Billion Acquisition of Legend
- Deal Details: Genius Sports announced the acquisition of Legend for up to $1.2 billion, with $900 million payable at closing and an earnout of $300 million, which is expected to immediately enhance group adjusted core profit margins and free cash flow conversion.
- Revenue Outlook: The company anticipates preliminary group revenue of $669 million for FY25, reflecting a 31% year-on-year growth, and expects FY26 revenue to reach approximately $810-820 million, indicating strong growth potential.
- Financial Targets: Post-acquisition, Genius Sports expects to achieve approximately $1.1 billion in group revenue and $320-330 million in adjusted core profit in 2026, with an anticipated free cash flow conversion rate of about 50%, driving long-term growth.
- Market Reaction: Despite the strategic nature of the deal, Genius Sports' shares plunged 26.5% following the announcement, reflecting market concerns about the acquisition, with the stock down 34% over the past 12 months.
See More
Genius Sports' Acquisition of Legend Triggers Stock Plunge
- Massive Acquisition Deal: Genius Sports announced its acquisition of digital sports and gaming media network Legend for up to $1.2 billion, including $800 million in cash and $100 million in stock, which represents 80% of its $1.5 billion market cap, raising concerns about its financial health.
- Profitability Concerns: Despite the large deal size, Genius Sports has yet to achieve profitability, leading to a 23% drop in stock price following the announcement, as investors express skepticism about its future earnings potential.
- Optimistic Business Integration: With Legend's array of media brands and premium content partnerships with Yahoo! Sports and Sports Illustrated, the combined company is expected to see sales double from $669 million in 2025 to $1.6 billion by 2028, indicating strong market potential.
- NFL Stake Boosts Confidence: Given that the NFL holds a 10% stake in Genius Sports and has an exclusive partnership through 2029, there remains optimism about Genius Sports' long-term prospects, with expectations of generating $160 million in free cash flow in 2026.
See More
Genius Sports to Acquire Legend in $1.2 Billion Deal
- Acquisition Overview: Genius Sports announced an agreement to acquire Legend for up to $1.2 billion, with $900 million payable at closing, consisting of $800 million in cash and $100 million in stock, plus a potential earnout of up to $300 million tied to profitability and cash flow targets, expected to close in Q2 2026.
- User Base Integration: In 2025, Legend attracted 320 million annual visits from 118 million unique users, with over two-thirds returning regularly, and this acquisition is expected to integrate this highly engaged sports and gaming audience into Genius Sports' media ecosystem, providing a reliable revenue stream.
- Enhanced Financial Outlook: The acquisition is projected to be immediately accretive to adjusted EBITDA margins and free cash flow conversion, supporting a revenue CAGR of at least 20% from 2026 to 2028, with the combined company expected to achieve approximately $1.1 billion in revenue and $320–330 million in adjusted EBITDA for 2026.
- Market Transformation Potential: CEO Mark Locke stated that the acquisition will drive higher margins and stronger free cash flow, positioning Genius Sports to immediately transform the market and grow the size and scale of its business, with projected revenue reaching $1.6 billion by 2028 and an adjusted EBITDA margin of around 35%.
See More
Genius Sports Acquires Legend for Up to $1.2B
- Large Transaction Value: Genius Sports announced the acquisition of digital sports and gaming media network Legend for up to $1.2 billion, with $900 million payable at closing and an additional $300 million earnout, reflecting the company's confidence in future growth.
- Strong User Base: In 2025, Legend achieved 320 million annual visits from 118 million unique visitors, with over two-thirds of users returning regularly, providing Genius Sports with rich user data and potential revenue streams.
- Significant Financial Impact: The acquisition is expected to be immediately accretive to the company's adjusted EBITDA margins and free cash flow conversion while maintaining at least a 20% CAGR in group revenue, indicating a robust financial outlook.
- Accelerated Strategic Goals: Genius Sports CEO Mark Locke stated that this deal accelerates the company's strategic and financial objectives, enhances fan monetization, and builds a fully integrated sports and gaming media network, driving higher margins and stronger cash flow.
See More
