SharpLink Gaming’s proposed acquisition of SportsHub hit by legal investigation

SharpLink Gaming’s proposed acquisition of SportsHub has been thrown into doubt as it faces scrutiny from an ex-Attorney General of Louisiana, Charles C. Foti Jr. and the law firm Kahn Swick & Foti (KSF).

The acquisition, which was announced last week, is being investigated to determine whether the deal and the process that led to it were adequate and fair to SportsHub’s shareholders.

Under the proposal, SportsHub shareholders will receive an aggregate of 3.67 million ordinary shares of SharpLink in exchange for all outstanding capital stock of SportsHub.

SportsHub is currently SharpLink’s largest shareholder, holding approximately 8.9 million shares of SharpLink’s ordinary shares.

When the deal was announced, Rob Phythian, co-founder and CEO of SharpLink, said the acquisition would help sports fans transition into sports bettors.

He said: “This acquisition gives SharpLink access to a large and loyal base of fantasy sports fans who we know are also sports bettors, or would likely become sports bettors when legalised in states where they reside.”

“In addition, the SportsHub platform is expected to serve as an invaluable proving ground for expanding our C4 technological capabilities to provide users with highly localised, single-point access to products and services beyond embedded personalised sports betting content, including direct access to fan merchandise, ticketing outlets, local business discounts and giveaways and other fan-centric goods and services available within each user’s personal fandom ecosystem.”

John Lettmann, chairman of the board of SportsHub, added: “We are excited about the combination of SportsHub and SharpLink. It represents a merger that we believe will create a significant opportunity for our companies as the US sports betting industry evolves and matures.

KSF has asked for those who want to discuss their legal rights around the sale to contact them ASAP.