CBWG founders exit XLMedia as earn-out period ends

XLMedia has announced the two co-founders of its acquired CBWG business will leave the company as the earn-out period ends.

The affiliate acquired CBWG in 2020, which saw the firm enter the US market for the first time.

CBWG is a media publishing company focused on college and professional sports in the US, and prior to the acquisition it owned and operated sites such as BetNewJersey.com.

As part of the deal, CBWG co-founders Kyle Laskowski and Jason Ziernicki were given newly created roles at XLMedia.

XLMedia paid $12m in cash and issued 7,954,546 shares at an aggregate value of $3.5m.

An additional fee of $9.5m was also negotiated and has since been paid out following the agreed deal, which was dependent on CBWG’s revenue performance.

Laskowski said: “As a founder, you build a brand not knowing what the future holds, in our case, it was joining XLMedia.

“We are very proud of what we and the team were able to build at XLMedia, while pioneering the North American sports market’s media partnership model. But the time is right for us to move on, and we feel confident we are leaving the business in good hands.”

David King, CEO of XLMedia, added: “It was important for Kyle and Jason to join the business and ensure a successful integration into the XLMedia business and transfer of knowledge.

“As entrepreneurs, it is understandable that they are looking to move on, but they leave behind a highly talented team committed to growing XLMedia’s US business. I wish them the very best for the future.”

Following this announcement, XLMedia has revealed that Kevin Duffey, the current VP of sports media and founder of subsidiary Saturday Football Inc, has been appointed VP of North America sports and will be responsible for all North American sports content.

Elsewhere, XLMedia furthered its partnership with US publisher Advance Local to produce premium betting content for Massachusetts leading local news and information website, Masslive.com.