The Southern California-based DFS site Fantasy Aces has announced that it will acquire competitor DraftTeam, with the intention of expanding its user base, increasing tournament guaranties and offering more live events. The two companies will combine assets into a new entity called Fantasy Aces Daily Fantasy Sports Corp (FADFSC), which will be operated solely by Fantasy Aces executives.
“This transaction will enable Fantasy Aces to provide all of you with the greater array of contests, better product, live events, additional sports, and the industry renowned customer service you all have grown to expect from us,” said cofounders Trent and Bryan Frisina in a post on RotoGrinders.
The deal will also make Fantasy Aces the first standalone DFS site to be publicly traded (DraftDay is also traded publicly, but through its parent company MGT). In addition, Fantasy Aces announced that it had secured a loan of up to $500,000 to cover operating costs until the deal has been completed.
Revenue and user base figures
The press release also revealed that DraftTeam and Fantasy Aces, combined, have a gross revenue of $349,154 and have paid out $3,395,430 this year through May. At present, FADFSC boasts 24,517 members, with 9,340 being active on the site.
In 2014, Fantasy Aces posted a gross revenue of $220,440, with a gross profit of $54,135, making for a net income loss of $567,061 after operating costs
In the press release, Fantasy Aces detailed why it had decided to acquire DraftTeam, and listed several advantages which could come from the transaction.
- Increased selection of tournaments and bigger guaranties
- Increased marketing budget to build a larger user base
- More live events at sports venues around the country
- Partnerships and sponsorships with leagues, teams and players
- Expansion into international markets
The acquisition will help Fantasy Aces cut a slice of market share from FanDuel and DraftKings, both of which have recently inked blockbuster partnerships while raising millions from investors.