Genius Sports swiftly dismissed rumors on Wednesday that it is in talks to acquire sports betting tech provider Kambi, following an unconfirmed report suggesting the two companies were discussing a sale.
“As policy, we do not comment on unfounded and ill-informed rumours. To prevent any further speculation, we can confirm that we are not involved in any discussions of this nature with Kambi,” Genius Sports CEO Mark Locke, said in a press release.
Speculation about Kambi’s potential sale has intensified since the company nullified its 2027 revenue projections, citing regulatory logjams. Acquiring Kambi would position Genius to offer its own sports betting product services, like trading tools and risk management.
Kambi dismisses Genius Sports rumor
Kambi Chairman Anders Ström issued the following statement shortly after the Genius announcement:
“While Kambi tends not to comment on rumours and speculation, I can confirm that Kambi is not engaged in any such discussions.”
Kambi’s share price is down 26% year-to-date, trading at 124 Swedish krona.
Kambi navigates changing US sports betting landscape
Kambi faced a tough comparison period in the fourth quarter. Results from late 2022 included Penn‘s $12.5 million early-termination fee and the World Cup. Its US business suffered from customers like DraftKings and ESPN Bet moving to their own proprietary tech stacks.
In response, Kambi has made several moves. It replaced longtime CEO Kristian Nylén with former Sportradar executive Werner Becher in July. It also recently extended a deal with Rush Street Interactive, which is the subject of its own acquisition rumors.
Kambi’s projected full-year revenue for 2024 is €175 million, only slightly up from its FY23 revenue of €173 million. Despite the speculation, there is no confirmation of any active sale process.
