Genius Sports revealed a $1.2 billion deal to acquire Legend, a digital sports and gambling media company. Subsequently, Genius stock (NYSE: GENI) dropped nearly 20% in early trading on Thursday to $6.76 per share and then ended the day with a 27% loss, closing at $6.19 per share.
First of all, Genius offered $900 million upfront, with $800 million in cash and $100 million in stock. Moreover, the deal includes an earnout of up to $300 million, which will be paid over the years following the closing of the transaction. This purchase is the biggest one that Genius Sports has ever made, and it is expected that the deal will be completed in the second quarter of 2026, subject to the usual closing conditions.
Genius has borrowed $850 million to fund its purchase of Legend. The company believes that its leverage ratio, i.e., net debt divided by EBITDA (earnings before interest, taxes, depreciation, and amortization), will stay under 3 times after the deal. The company, based in London, has a market value of approximately $2 billion.
Legend is a digital sports and gambling media company that operates the sports betting affiliate Covers.com, the online casino and betting brand Casino.org. In a 2025 press release, Legend announced 320 million annual visits from 118 million unique users, with over two-thirds of these users being regularly returning, backed by shareholder letters.
This acquisition is consistent with the company’s move into advertising technology, which is enabling it to grow beyond sports and media data services.
Genius suggested that the acquisition would give the company access to a “highly engaged sports and gambling audience.”
This deal is the latest acquisition by Genius Sports. The London-based business revealed in September that it was purchasing fan data company Sports Innovation Lab.
On Thursday, Genius also released the expected preliminary financial results for their fiscal year ended December 31. They expect the total revenue of the group to grow by 31% year-on-year to $669 million, while the group-adjusted EBITDA is predicted to jump by 59% to $136 million. By 2026, Genius sees the group revenue reaching the range of $810 million – $820 million, with the group-adjusted EBITDA pointing towards $180 million – $190 million.
Deutsche Bank and Goldman Sachs acted as the financial advisors to Genius Sports for the deal and both parties have agreed to provide the financing. Macfarlanes was the legal adviser to Genius, whereas Oakvale Capital and The Raine Group were the financial advisors to Legend. Latham & Watkins and Herzog Fox & Neeman acted as the legal counsels of Legend for the transaction.
