A prominent digital media entity, Catena Media, recently acquired Squawka.com, a soccer and fantasy athletics platform that has faced challenges lately. The purchase price? A mere £1 million.
This strategic acquisition is anticipated to generate an additional €2 million in annual revenue for Catena Media, boasting a substantial 60% profit margin. Furthermore, they secured Squawka at a bargain price with an upfront payment of £1 million.
For those unfamiliar, Squawka holds significant weight in the soccer realm. Their website attracts a considerable 4 million monthly users, and they possess a devoted following of approximately 800,000 on Twitter. Previously, their revenue stream relied solely on display advertising, which proved insufficient. Their financial difficulties have been no secret, even leading them to voluntarily seek administration.
Catena Media intends to incorporate Squawka’s user-centric, data-driven framework into their existing offerings – a prudent decision given Squawka’s reputation for its sleek design and accessible visuals, all fueled by automated data streams.
This marks Catena Media’s second consolidation this month, indicating a potential trend, particularly with a major year for sports approaching. Integrating Squawka not only presents a cost-effective opportunity but also substantially expands their presence within the highly profitable online soccer market.
