Core Viewpoint - Genius Sports Limited (GENI) is experiencing a significant stock decline of approximately 25 percent following the announcement of its acquisition of Legend, a digital sports and gaming media network, valued at up to $1.2 billion [1]. Group 1: Stock Performance - The stock is currently trading at $6.36, reflecting a decrease of 25.53 percent or $2.16 from the previous close of $8.55 on the New York Stock Exchange [1]. - Over the past year, the stock has fluctuated between $6.37 and $13.73 [1]. Group 2: Acquisition Details - The acquisition of Legend is intended to expand Genius Sports' media ecosystem [2]. - It aims to integrate Legend's audience and marketing with Genius Sports' FANHub platform, which connects over 2,000 sports, media, and betting partners [2].

Core Viewpoint - Genius Sports has agreed to acquire Legend, a digital sports and gambling media company, for $1.2 billion, marking the largest acquisition in Genius Sports' history [1][2]. Group 1: Acquisition Details - The acquisition involves an upfront payment of $900 million, consisting of $800 million in cash and $100 million in stock, with an additional earnout of up to $300 million over two years post-transaction completion [2]. - The deal is expected to close in the second quarter of 2026, pending customary closing conditions [2]. Group 2: Financing and Leverage - Genius Sports is financing the acquisition with an $850 million loan, and the company anticipates maintaining a leverage ratio below 3x debt-to-EBITDA after the deal [3]. Group 3: Company and Market Impact - Legend, the target company, generated 320 million annual visits from 118 million unique visitors in 2025, with over two-thirds of visitors returning regularly [4]. - The acquisition aligns with Genius Sports' strategy to diversify its business into advertising technology beyond sports and media data streams [4]. - Genius Sports expects a 31% year-over-year increase in group revenue to $669 million for the fiscal year ending December 31, with adjusted EBITDA rising 59% to $136 million [6]. Group 4: Advisory and Legal Support - Deutsche Bank and Goldman Sachs provided financial advice and committed to financing the deal for Genius Sports, while Macfarlanes acted as legal advisors [7].

Summary of Genius Sports Conference Call on Acquisition of Legend Company and Industry - **Company**: Genius Sports (NYSE: GENI) - **Acquisition Target**: Legend, a global digital sports and gaming media network Core Points and Arguments 1. **Acquisition Announcement**: Genius Sports announced the acquisition of Legend, which is expected to enhance its strategic and financial execution, achieving significant revenue and EBITDA targets earlier than anticipated [3][4][22] 2. **Financial Projections**: - For 2026, Genius expects approximately $1.1 billion in revenue and $320-$330 million in adjusted EBITDA post-acquisition [4][18] - Long-term targets include $1.6 billion in revenue by 2028 with a 35% adjusted EBITDA margin [4][18] 3. **Revenue Growth**: Genius reported a 31% revenue growth in 2025, with media segment growth at 37% year-over-year [3][4] 4. **Market Position**: The acquisition positions Genius as a leader in both sports data and media-driven monetization, creating a unique end-to-end performance-driven sports and gaming media network [13][24] 5. **Customer Base Expansion**: The combined company will serve over 2,000 customers globally, including leagues, teams, sportsbooks, gaming operators, media companies, brands, and agencies [13][14] Additional Important Content 1. **Data and Technology Integration**: Legend's AI-powered platform enhances Genius's ability to capture real-time user intent and monetize it effectively across various channels [5][10][33] 2. **User Engagement Metrics**: Legend's properties have an average return rate of 75% and generate over $2 in revenue per unique visitor, significantly higher than industry averages [9][48] 3. **Revenue Model**: Legend generates revenue through strategic partnerships in the regulated betting and gaming space, sharing lifetime revenues from players acquired through its platforms [46][48] 4. **Synergies and Growth Opportunities**: The acquisition is expected to create significant revenue and operational synergies, particularly in the iGaming sector and emerging gaming categories [15][19][51] 5. **Leverage and Financial Strategy**: The acquisition will be financed through $900 million, including $800 million in cash and $100 million in stock, with a focus on maintaining manageable leverage levels [20][21][52] Conclusion The acquisition of Legend by Genius Sports is a strategic move aimed at accelerating growth, enhancing profitability, and solidifying its position in the sports data and media landscape. The integration of Legend's technology and audience will provide Genius with new monetization pathways and a broader customer base, ultimately driving long-term value creation.

Accelerating the Genius Sports Media Strategy February 2026 Legend to Join Genius Sports Disclaimer Forward-Looking Statements This presentation contains forward-looking statements as defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements, including but not limited to statements relating to the closing timeline of ...