PLAYMAKER ACQUIRES VIDEO-FIRST MEDIA PLATFORM CRACKS, YOUTUBE’S LARGEST SPANISH-LANGUAGE SPORTS NEWS CHANNEL

By | January 11, 2022

 

Playmaker Capital Inc., the digital sports media company that delivers authentic content experiences through its portfolio of sports media and technology brands, announced today the acquisition of Mexico-based video-first sports platform, Cracks. Cracks is a soccer-centric collection of digital media assets that has a total audience across all channels in excess of 12.6 million subscribers worldwide, including the most followed Spanish-language sports news channels on YouTube (Cracks Global Edition, Cracks Mexico, Cracks Colombia, and Cracks Argentina).

Cracks Global, its flagship YouTube channel, has nearly 5.5 million subscribers and has attracted more than 2.7 billion lifetime views on YouTube. Based on January 7, 2022 data, Cracks Global generates an average of 502,000 views per video, which ranks 15th amongst the top-50 sports channels by subscribers on YouTube globally. Across the entire Cracks YouTube portfolio, including Cracks Global, Cracks Mexico, Cracks Colombia, and Cracks Argentina, there are over 7 million active subscribers.

Cracks, originally founded by Guadalajara-native Manuel Bravo, one of the most prominent YouTuber’s in Mexico and Latin America, also significantly increases Playmaker’s social media following across other key social channels. Cracks reaches 2.9 million followers on Facebook, 1.1 million followers on Instagram, 203,000 followers on Twitter, 818,000 followers on TikTok, and 46,000 followers on Twitch.

The acquisition of Cracks establishes video production and monetization as a new centre of excellence for Playmaker, complementing its existing robust in-house editorial expertise across its multiple web properties, social media channels, mobile apps, and fan pages. The acquisition will also provide additional opportunities for enhanced partnerships, including the creation of on-premise original content created during the 2022 FIFA World Cup in Qatar featuring Manuel Bravo as lead talent.

“Cracks’ story is one of passion, persistence and professionalism, led by “Manu” since the company’s inception. We are thrilled that he chose Playmaker to take Cracks to the next level,” commented Federico Grinberg, EVP of Playmaker and CEO of Futbol Sites, a Playmaker brand. “Cracks will give us access to a completely new revenue stream: original video creation and monetization through syndication on third-party platforms, mainly YouTube and Facebook. This acquisition will enrich our commercial offering by bringing an original product and adding the talented Cracks staff to our team, providing Playmaker the opportunity to offer much more powerful branded content solutions to our advertisers.”

“Cracks started as an amateur project that maintained a continuous upward growth trajectory despite its limitations,” commented Bravo. “Since the platform was created, our team’s job transitioned from creating high-quality and entertaining content to becoming leaders and a point of reference in the industry. Now that Playmaker is acquiring Cracks, we will not only continue to be leaders in our field but can also aspire to make a leap in quality across the board. Ultimately, we are confident our audience will benefit, as we continue to build the best possible version of Cracks.”

In line with one of Playmaker’s goals to be the definitive digital sports media destination for the Latin American and US Hispanic markets, Playmaker has now acquired four Latin American-based organizations since November, 2021, including Varsky Sports (Argentina), Grupo SuperPoker (Brazil), Futmarketing (Brazil), and Cracks (Mexico). These businesses will be operated by the Futbol Sites leadership team. Playmaker’s aspiration to be the premier source of sports content in Latin America and the U.S. Hispanic market mirrors its efforts in North America. In 2021, Playmaker acquired Yardbarker (USA) and The Nation Network (Canada).

TRANSACTION DETAILS
Pursuant to the terms of an asset purchase agreement, Playmaker acquired 100% of the digital assets, marks, and copyright of Cracks for aggregate consideration of up to US$1.7 million. The purchase price consideration consisted of (i) a cash payment of US$0.4 million on closing, and (ii) cash payments of up to a maximum of US$1.3 million payable to the seller upon Cracks achieving certain milestones and performance related targets over the 12-months following closing.

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