What happened
Shares of dMY Technology Group II (DMYD +0.00%) jumped by as much as 50% in trading on Monday after the company announced a new deal with the NFL. At the close of the session, shares were up by about 40%.
So what
Genius Sports Group, the company dMY Technology Group II is planning to merge with, announced a sweeping NFL data deal late last week. The company will distribute the NFL's Next Gen Stats data feeds to global media and gambling markets, live betting streams to sportsbooks around the world, as well as play-by-play statistics.
Image source: Getty Images.
The deal is primarily related to monetizing the NFL's data for betting purposes. Genius Sports Group said in a release this "will equip Genius with the necessary tools to drive key sports wagering metrics of turnover and player acquisition over the lifetime of the deal." Terms weren't released, but CNBC is reporting it's a four-year deal that could be valued at over $1 billion and includes cash and equity.
Now what
Landing a partner as big as the NFL is major for any company, but Genius Sports is also benefiting by taking business away from competitor Sportradar, which previously held the deal to supply the football league's data. While we don't know how this will impact its top or bottom line, investors are betting the new agreement will contribute to Genius Sports becoming a long-term growth stock. We will need to watch closely how this affects the company's equity structure and margins, but traders certainly saw it as a good deal on Monday.
