Overview
- Front Office Sports reported late Friday that U.K. trading firm IG Group agreed to buy Underdog for up to $2.15 billion, a package Front Office Sports says includes $1.1 billion upfront, a $200 million shareholder earnout, and up to $850 million for eligible employees.
- Underdog confirmed to Front Office Sports that Adam Schefter was an early-stage investor from the company’s 2021 funding round and sources told reporters his investment was small and he held no operational role.
- Based on Underdog’s July 2022 valuation of about $485 million, reporting says Schefter’s original stake likely produced a multi‑fold return, though precise figures for his payout and the full deal remain unverified.
- The company shifted from daily fantasy and a content network into a prediction-market operator this year, cutting staff and closing its content arm as part of that strategic pivot ahead of the sale.
- The disclosure has prompted renewed scrutiny of newsroom disclosure rules and the appearance of conflicts when high-profile reporters hold stakes in betting-related firms even though no misconduct has been alleged.