Better Collective acquires stake in rival affiliate Catena Media

Better Collective has acquired a minority stake of at least 5% in competitor Catena Media, a move which sent both firm’s share prices jumping.

Following the market’s closure in Stockholm yesterday, Better Collective announced it had acquired the position in Catena in a brief statement.

Better Collective said: “Better Collective has announced to Catena Media that it has acquired a position of >5% in the company. Better Collective is satisfied with the position, and will not comment any further on the matter.”

Based Catena Media’s market cap today of around SEK2.2bn (£173m), it suggests Better Collective has stumped up at least £8.6m for its stake in the Malta-based business.

In early morning trading, Better Collective’s share price has ticked up by 4.3% to SEK169.30, while Catena Media’s stock has risen by 5.5% to SEK30.64.

The news of the minority purchase comes days after Gaming Innovation Group, which has a significant affiliate business, completed the €45m acquisition of AskGamblers and its related brands from Catena Media.

Catena Media is aggressively repositioning its capital and operational capacity to tackle North America, where it believes it is the number one affiliate with Legal Sports Report and it’s state-specific ‘Play’ brands.

In a preliminary trading update, Catena Media noted it expects Q4 North American revenue to jump by 31%, with the segment accounting for 78% of total group revenue.

The group announced a strategic review last May which involved 25% of its European headcount being cut, as well as selling off a number of European assets.

Last month, the affiliate named Carnegie Investment Bank as its financial adviser to support with the possible sale of assets or a public tender offer for the firm.

The speculation is that Better Collective could be gearing up for a hostile takeover of Catena Media.