FORT WORTH, Texas - Lottery.com Inc. (NASDAQ:LTRY), an online lottery and digital entertainment provider, has signed a Memorandum of Understanding to acquire CMF Media, a sports content production house, in a stock deal valued at $1 million. The transaction, which will see CMF Media integrated into Lottery.com’s Sports.com brand, is part of a strategic initiative to enhance the company's presence in the sports entertainment sector.
CMF Media, owned by Charlie Bingham and Miguel Sánchez, will be rebranded as Sports.com Studios and continue to produce original sports content. The acquisition is set to augment Sports.com's content offerings and is aligned with Lottery.com’s strategy to develop the Sports.com brand through a series of targeted acquisitions.
The deal will be executed entirely in common stock of Lottery.com, with shares issued at $3.00 per share. Following the acquisition, Bingham and Sánchez will join forces with Tim Scoffham at the recently acquired Sports.com Media to drive content creation.
Matthew McGahan, Chairman and CEO of Lottery.com, expressed confidence in the acquisition, citing the enhanced production capabilities and the value it will bring to Sports.com. He emphasized the potential for original sports content to engage the platform's growing audience.
The first major project under Sports.com Studios will be "Football Vs," a sports show created by Miguel Sánchez. The show aims to offer a unique viewing experience by featuring world-renowned footballers and an A-list international music icon.
Bingham brings to the table 17 years of experience in the television industry, including work on high-profile shows such as "River Monsters," "Bear Grylls," and "The Grand Tour." Sánchez has over 13 years of production experience and has been involved in various sports platforms, including overseeing content and production for the 2016 Rio Olympic Games at Televisa's VP entertainment office.
The acquisition promises to bolster Lottery.com's foray into sports entertainment, leveraging CMF Media's expertise to deliver innovative sports programming. The announcement is based on a press release statement from Lottery.com.
In other recent news, Lottery.com is facing potential delisting from Nasdaq due to not meeting the required minimum bid price over a period of 30 consecutive business days. The company has been given a 180-day grace period to regain compliance by maintaining a closing bid price of at least $1 for a minimum of ten consecutive business days.
In a strategic move, Lottery.com has also acquired technology firm S&MI Ltd, the entity behind the Sports.com brand and app. This acquisition is expected to expand Lottery.com's presence in the digital sports entertainment sector, particularly in the Middle East and North Africa.
Furthermore, Sports.com, a subsidiary of Lottery.com, has partnered with Bango PLC to launch its streaming platform in 40 new markets, primarily focusing on North America and Europe, with further expansions planned for Latin America and the Asia Pacific region.
However, Lottery.com recently announced the resignation of board member Mark Bernard Battles, who is leaving due to his desire for early retirement. This decision is not linked to any disagreements with the company's operations, policies, or practices. Following his departure, the board will decrease from six to five members. These are recent developments in the company's ongoing journey to enhance its global presence and offerings.
InvestingPro Insights
As Lottery.com Inc. (NASDAQ:LTRY) embarks on its strategic initiative to enhance its presence in the sports entertainment sector, its financial health and stock performance remain key points of interest for investors. Based on real-time data from InvestingPro, Lottery.com operates under a considerable debt burden and may struggle with its interest payments, which is a critical aspect for investors to monitor as the company continues to make acquisitions like that of CMF Media. The company's strategy to grow through targeted acquisitions could be hindered by its financial obligations.
InvestingPro Data shows a stark contrast in Lottery.com’s financial performance with a notable revenue growth of 125.44% over the last twelve months as of Q2 2024. However, this growth is coupled with a significant operating income margin deficit of -494.41%, suggesting that despite increasing revenues, profitability remains elusive. Additionally, the stock has experienced a substantial decline over the past year, with a 1 Year Price Total Return of -82.33%, reflecting investor concerns and market adjustments to the company's financial position and outlook.
InvestingPro Tips highlight that the stock is trading at a low Price / Book multiple of 0.16, which could indicate that the market has undervalued the company's assets relative to its share price. This, along with the fact that Lottery.com is trading near its 52-week low, presents a potential opportunity for value investors seeking to capitalize on such discrepancies. Moreover, with the company's stock price movements being quite volatile, investors should be prepared for potential short-term fluctuations.
For those interested in deeper analysis, InvestingPro offers additional tips on Lottery.com, including insights on cash flow, industry positioning, and long-term stock performance. These additional tips can be accessed through the dedicated InvestingPro page for Lottery.com at https://www.investing.com/pro/LTRY.
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