PrizePicks Hire Bank Moelis & Co. in Interesting Move
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00:00Let's dive in. PrizePix basically getting themselves in a new partnership with another company.
00:05There's some discussion as to whether or not they would be sold outright.
00:08What's the very latest there?
00:11Yeah, interesting development here.
00:13PrizePix has hired MOLUS & Co., which is one of the largest investment banks in the world, to explore potential merger and acquisition opportunities.
00:22MOLUS & Co., if you're not familiar with them, helped facilitate high-profile deals like the Sprint and T-Mobile merger that happened a few years ago.
00:31They've helped MGM sell off a couple of casinos.
00:33So they're no stranger to the gambling or fantasy space either.
00:37But it's being reported that PrizePix is apparently not interested in selling itself outright to another company.
00:43So that kind of leads us to speculate what exactly might happen here, whether they'd be buying somebody else, whether they'd be merging with someone else.
00:52On paper, you would think a company like DraftKings or FanDuel would be really interested in PrizePix because of the database of players that they have in states like California and Texas, basically places that those companies have been pining away to have legalized forever.
01:07And PrizePix has been able to kind of offer this, shall we say, adjacent product, the whole pick-up thing going on, where you can basically do parlays as long as they're in an entry.
01:19But off of paper, PrizePix and the other pick-up companies, the underdogs of the world, sort of have bad blood with the companies.
01:30They've kind of, you know, behind closed doors or sometimes outside of closed doors have accused them of leading this kind of attack against them where states have cracked down on their products.
01:39So it makes you kind of think that a company like DraftKings or FanDuel wouldn't really be interested in merging.
01:45You've had other companies like Underdog start off with fantasy sports betting and then use that as a way to launch into sports betting.
01:54PrizePix has been pretty vocal about not wanting to do sports betting, and you can't really blame them when they've been so successful doing the fantasy product, which is a lot cheaper and probably has a lot better return.
02:06So you're kind of wondering what might happen here.
02:11You know, they've obviously hired this firm to make some sort of move.
02:14I don't know if they'd be acquiring a competitor like Underdog or Sleeper.
02:17Kind of have to see how this all develops.
02:19So it's going to be something to watch.
02:21I guarantee, you know, it's going to be another interesting year with all this fantasy stuff coming to a head once the political stuff gets going.
02:29So the fact that PrizePix is making moves at this time is definitely a significant sign to keep watch going.