Affiliate Marketing

SharpLink acquires iGaming and affiliate marketing network owner FourCubed for $8.15M

Minneapolis-based online technology company SharpLink Gaming is acquiring certain assets of FourCubed, owner of an iGaming and affiliate marketing network comprised of over 12,000 sub-affiliates, the business announced on Wednesday.

The strategic acquisition is expected to unlock and fuel conversions and customer lifetime value of SharpLink’s 2.5 million and growing base of fantasy and sports game customers, according to a press statement on the matter.

SharpLink, which specializes in technological solutions and experience-based services for the US online sports betting industry, said it has acquired certain assets of FourCubed for total consideration of $8.15 million, which consists of $6.5 million in cash and the issuance of approximately 600,000 restricted ordinary shares of SharpLink.

Moreover, the transaction also provides for an earn-out payment of up to approximately 600,000 additional restricted ordinary shares based on the acquired business achieving specific agreed-upon performance benchmarks, SharpLink further announced.

The FourCubed strategic acquisition adds an industry respected operating team with decades of combined experience in conversion through affiliate marketing services and in securing highly profitable, recurring, net gaming revenue contracts with many of the world’s leading iGaming operators,” said Rob Phythian, Co-Founder and CEO of SharpLink.

According to the CEO, FourCubed has “differentiated itself” from its competition by forming “sticky relationships” with its customers through a high tech, high touch strategy, and proven player conversion methodologies. FourCubed’s iGaming and affiliate marketing network delivers quality traffic and player acquisitions, retention and conversions to iGaming operator partners worldwide.

We believe that FourCubed’s technology platform, its team’s affiliate marketing expertise, as well as its approach to player conversions, can be readily adapted to SharpLink’s platform, unleashing extraordinary value from our growing audience of sports fans as adoption of our C4 sports betting conversion technology continues to accelerate,” further said Phythian.

First established in 2005, FourCubed operates an international iGaming affiliate network comprised of over 12,000 sub-affiliates, and has delivered over 1.8 million referred players since the network’s launch in 2008. For the past three years, FourCubed has averaged annual revenues of more than $5.5 million.

Over 90% of FourCubed’s revenue stems from recurring net gaming revenue contracts with several high-profile iGaming operators worldwide, including Party Poker, bwin, UNIBET, GG Poker, Bet365, 888 poker, betfair, among others.

“We also believe that FourCubed has reached a key inflection point in its own proprietary business evolution and is ideally poised for dynamic growth of its online poker and casino gaming operations through expansion in the fast-emerging iGaming and sports betting markets in the U.S,” Phythian further noted. “Consequently, we believe that this acquisition provides SharpLink with the added firepower to help shape our Company into a true industry force.”

Resulting from the deal, Chris Carlson, Founder of FourCubed, has been named Vice President of Conversions at SharpLink. At this position, Carlson will be charged with managing affiliate marketing strategy and execution, collaborating on partnership development and growth and driving profitability.

“I believe that our companies’ united strengths and respective spheres of influence in the industry will create a catalyst for pronounced growth of SharpLink well into the foreseeable future,” Carlson commented on the acquisition. “With the iGaming and sports betting markets beginning to gain notable momentum in the U.S., we couldn’t be more excited about the opportunity to help ensure SharpLink wins industry dominance.”

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