Growth in Sports Tech M&A Remains Robust Despite Concerns Over Trade War

The sports technology mergers and acquisitions landscape had a stellar year last year, according to investment bank Drake Star, specializing in technology capital markets. The sector has shown resilience and momentum in the face of global trade uncertainties, as evidenced by a record-breaking $86 billion in deals announced in 2024 across various M&A, private placement, and public market transactions – a significant increase from the $26.7 billion seen in 2023.

Drake Star’s Principal Mohit Pareek highlighted the impressive performance in sports tech M&A despite the broader market’s sluggish recovery from 2023. Notable deals included the Silver Lake-led acquisition of Endeavor, Skydance’s pending purchase of Paramount, and KKR’s acquisition of Varsity Brands, with about two-thirds of the deal value concentrated in North America. Wearables emerged as a prominent segment, representing 37% of the total M&A activity, followed by esports, fantasy, and betting.

The positive trend from 2024 has flowed into early 2025, with highlights such as Urban Sports Club’s acquisition by Wellhub for $2.4 billion and the pending Disney-Fubu merger in the sports streaming sector. Despite market headwinds like tariffs and trade wars, the sports industry remains resilient as an asset class, driving strategic consolidation and technological advancement through continued M&A activities, as observed by Drake Star in their analysis.

While M&A activities have been robust, the financing market, including venture capital, private equity, and debt funding, has shown a less vibrant performance. The first quarter of 2024 witnessed a decline in this segment, with mid- to late-stage deals seeing a late-year rebound. However, the overall deal count decreased by more than 8% compared to 2023, with a 22% drop in dollar value, reflecting a lackluster broader financing market as analyzed by Drake Star.

Moving forward, the sports tech industry remains optimistic amidst the challenges posed by global trade uncertainties and economic conditions. The outlook for mergers and acquisitions remains strong, driven by strategic consolidation, technological advancements, and market resilience, indicating a continued upward trajectory for this dynamic sector in the coming months.