Rumors are abounding about a potential merger that could shake the industry: Apollo Global Management is considering merging its Yahoo Sports brand with PointsBet.
The talks are still at a very early stage, with everyone involved speaking anonymously, information amounting to hearsay, and the structure of the deal yet to be decided.
According to CNBC, one executive involved in the negotiations reportedly commented: “Everyone is talking to everyone right now. There needs to be consolidation.”
The New York City-based Apollo is one of the largest funds in the world, overseeing nearly half a trillion dollars in assets. Last year, it acquired Yahoo from Verizon for $5bn.
Now it is looking to merge its Yahoo Sports offshoot with PointsBet Holdings, the Australian betting company with a market valuation of $760m.
Despite the talks being preliminary, the new company would likely continue to carry the Yahoo brand and effectively create a sports betting giant with the moniker Yahoo and all the brand recognition benefits that that name holds.
Representatives for Apollo, Yahoo and PointsBet all declined to comment.
This would by no means be Apollo’s first foray into the world of gaming and it quietly holds many assets in the industry. Notably, in 2008 the management group completed a $30bn leveraged buyout of Caesars Entertainment. The move was controversial, as it oversaw a Chapter 11 bankruptcy restructuring before selling it in 2019.
More recently, Apollo has provided funds to VICI Properties to acquire the Venetian Resort Las Vegas and the Venetian Expo and Convention Center for $4bn.
