Booyah! Whistle Sports Scores $28 Million Series B -- That's "Big" In Any Language

Whistle Sports, THE leading sports-focused MCN (and a Manatt Digital Media client) just scored big -- very big -- as in $28 million big, for its just-announced Series B round.  Two major international media companies joined the round as significant strategic investors -- BSKYB and Liberty Media (via its Liberty Global Ventures arm).  BSKYB's individual investment is $7 million, joining lead investor Emil Capital Partners (an affiliate of Germany-based Tengelmann Group) which adds to the round's overall international flavor.  Why relevant?  Because sports obviously is (are?) universal -- truly global in terms of interest and potential reach.  These massive new investors can accelerate that global reach -- which is smart, very smart (for all involved).

Want more?  Sports legends Peyton Manning and Derek Jeter -- both investors in the original $8 million Series A round -- also joined this one.  That's a good sign -- one that need not be hidden from the bench.

Whistle Sports essentially bills itself as a new ESPN for millennials -- built for a digital-first/native audience in an increasingly digital-first, smartphone-driven world.

They've got a massive market opportunity (a global passionate audience willing to spend on all things sports).  Great creative talent (include those "Dude Perfect" guys).  Seasoned coaching (CEO John West, co-founder Jeff Urban, and #2 Brian Selander).  A deep bench of executive talent.  Impressive metrics (12 million subs who have viewed the videos of 225 channel partners over 2 billion times).  And now a boatload of cash.

That's a winning combination in my book ...

StyleHaul’s $150 Million Valuation -- Good (Very!) for Other Vertically-Focused MCNs

As expected, fashion-focused MCN StyleHaul’s sale to Euro-based media conglomerate RTL Group is confirmed as of this morning.  And, consistent with my prediction a few weeks back, the deal values StyleHaul well north of $100 million -- essentially $150 million in fact.  But, reports indicate that the ultimate “haul” for investors could exceed $200 million via performance incentives.  Very stylish indeed!  (Here is my earlier analysis of why the deal makes sense for RTL).

This bodes well for other major vertically-focused MCNs -- i.e., those focused on a particular niche markets/audiences.  Those include Tastemade (foodie-focused), Mitu Networks (Latino-focused), DanceOn (a client that is dance-focused), Machinima (gamer-focused), and Whistle Sports (a client that is sports-focused and which just announced a major $7 million strategic investment from UK-based media giant BSKYB).  Why?  All target passionate groups under-served by “traditional” media outlets who are hungry for fresh content -- particularly short-form video for mobile engagement.

MCN M&A -- it’s not just about broad-based horizontal MCNs (like Maker Studios and Fullscreen) anymore.  In fact, vertically-focused MCNs cater to self-defined passionate audiences -- and that means deeper engagement and opportunities to monetize (via higher CPMs, more targeted sponsorship dollars, and direct commerce).

MCN Whistle Sports Scores $7 Million from BSKYB -- Here’s Why

Truly, the MCN world doesn’t sleep -- we are seeing a constant barrage of major strategic developments in the world of short-form video and mobile/digital-first strategies.

The latest data point?  Leading sports-focused MCN Whistle Sports -- still early in its first quarter (it only launched this past January) -- just received another $7 million investment from UK-based broadcasting giant BSKYB.  And, expect more significant sums coming soon to Whistle Sports -- which I just recently profiled the company and interviewed CEO John West here on my blog -- as part of its still-open Series B round.  This news follows Variety’s report just in the past couple days that Luxembourg-based RTL Group has acquired fashion-focused MCN StyleHaul.

Ahh yes, the growing internationalism of MCNs.  It ain’t just for U.S.-based media companies anymore (let’s not forget German-based media giant ProSieben's major investment in Collective Digital Studio and own Euro-based Studio71 which now aims to expand across the pond to the U.S.).  And, the rationale in this case is clear (just as it is in the case of StyleHaul).  Language is rarely a barrier in sports content, meaning that sports (just like fashion) travels well.  And, BSKYB -- already heavily and long-invested in sports -- can help to accelerate Whistle Sports’ international expansion (while it itself begins to play more aggressively in the mobile and digital-first content world, just as all other major “traditional” media companies need to be).  The Whistle -- which essentially is a digital and mobile-first ESPN for millennials, by millennials -- had just recently opened a London office.

Whistle Sports now scores 8+ million subscribers and 1.25+ billion video views, despite the fact that it is still early in its game.  That means that its growth is impressive.  And, BSKYB’s investment brings the company’s overall investment to $25 million from long-time media giant Bob Pittman and others.

I know Whistle Sports well -- and am proud to count it as a client and congratulate them on yet another major strategic victory.  I was first drawn to this MCN due to its impressive list of partnerships with virtually all major U.S. sports leagues, including the NFL and the MLB.  Being a deal guy, I know that finalizing deals with major players like those notoriously challenging and complex organizations are no small feat.  That reflects a highly talented and experienced executive team, led by CEO John West whom I have come to know.  And, impressive they are.

Whistle Sports -- always high on my MCN “hit list” for major strategic moves (others include StyleHaul (gone), Mitu Networks and DanceOn).  Not M&A yet.  No need to go deep when you have a team like BSKYB helping you to rush your international play-book ahead to an eventual major liquidity victory.