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BFD Expert Voices - Media Deals

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The IPO market for companies connected to the media space is coming back to life, Tim writes.

Why it matters: The IPO market has been thawing as economic conditions improve, but recent history has not been kind to media IPOs.

Driving the news: Flutter Entertainment, the Dublin-based owner of U.S. online sports betting leader FanDuel, debuted its listing on the New York Stock Exchange this morning.

Shares opened at $205 and were trading around $207 this morning.

Flutter is listed on the London Stock Exchange and canceled its secondary listing in Dublin in order to join the NYSE. 

The company said this morning it plans to make New York its primary listing. 

Zoom in: Social media giant Reddit, is prepping its IPO in March and could target a valuation as high as $5 billion, Bloomberg reported yesterday. 

Zoom out: The IPO revival is being driven by strong stock market performance, with the S&P 500 recently hitting a fresh record and improving economic sentiments, Dan Primack reports.

Over 100 companies raised $19.4 billion in U.S. IPOs last year, according to Renaissance Capital.

That was a marked improvement over 71 companies raising $7.7 billion in 2022, but well short of the 397 companies that raised $142.4 billion in 2021.

The media IPO market is beginning to heat up

1 big thing: IPOs on the comeback trail

Illustration of an infinite stack of Wall St. bulls.

Carry1st, an Africa-based gaming startup, landed the first investment out of Sony's VC fund aimed at the continent. 

Why it's the BFD: Africa represents one of the biggest growth markets in gaming and is reportedly projected to generate more than $1 billion in 2024, Tim writes.

Details: The size of the investment was not disclosed. 

Sony established the $10 million Sony Innovation Fund: Africa last year to invest in early-stage gaming, music, film and content distribution startups.

Carry1st was founded in 2018 and has raised more than $60 million from Andreessen Horowitz (a16z), BITKRAFT, Google, Riot Games and rapper Nas. 

The company primarily develops mobile puzzle-based games for clients including Activision. It also has a localized payment service called Pay1st that allows African gamers to buy games using local infrastructure, bank accounts and payment methods. 

What's next: Carry1st is planning on developing its own original titles CEO Cordel Robbin-Coker told CNBC. Three are in development.

The big picture: The formal console market still has little penetration in Africa. Many gamers in the region buy devices from local resellers that import from overseas, Robbin-Coker said.

Sony is coming off its best fiscal year for PlayStation 5 sales, with 25 million sales in FY 2023.

Sony invests in Africa gaming startup

2. The BFD: Sony's Africa bet

Illustration of a gaming control with a dollar sign cable

Digital media brand Overheard has partnered with Tinder on a new podcast series, Doing Things CEO Reid Hailey exclusively tells Kerry.

Why it matters: The investment comes as other media companies cut back on their podcast divisions.

Flashback: Doing Things acquired Overheard, known for viral city-focused social accounts like Los Angeles and New York, last December.

Details: "Hot and Single: The Podcast" launches today and publishes every other week. It's an extension of a dating show of the same name on TikTok and Instagram, hosted by comedian and Overheard NY senior editor Stef Dag. 

Tinder serves as the exclusive partner for the series.

The show is Doing Things' third podcast. "The Overheard LA Podcast" launched in October and the "Bob Does Sports Podcast" in August 2022.

The show is part of Doing Things' effort to "broaden and scale [its] brands beyond the feed" with podcasts, commerce and events, Hailey says. 

Exclusive: Overheard launches new podcast

3. Exclusive: Overheard's podcast push

Illustration of a microphone on top of a stack of dollars.

Go deeper in our full database in the Axios Pro Deals Tracker.

• Sierra, an enterprise AI company co-founded by OpenAI chair Bret Taylor, is finalizing an $85 million investment led by Sequoia Capital at a $1b valuation, per Bloomberg. https://axios.link/3u9XyPz

• Krutrim, an Indian AI startup from Ola co-founder Bhavish Aggarwal, raised $50m at around a $1b valuation led by Matrix Partners India. https://axios.link/493DYTU

• Wondercraft, a London-based podcasting and audio tool, raised $3m in seed funding led by Will Ventures. https://axios.link/3HB0eJ5

• Clearview Capital acquired Denver-based digital marketing firm AdCellerant. www.adcellerant.com

• KKR agreed to buy around 1,100 wireless towers in Colombia from Tigo Colombia, a subsidiary of Millicom (Nasdaq: TIGO). https://axios.link/3vTFKc6

4. Deal flow

• Vince McMahon resigned as executive chairman of WWE parent company TKO Group one day after being accused of sexual assault and sex trafficking in a lawsuit, Tim and Sara Fischer write. https://axios.link/42lHF5d

5. Movin' on up (or out)

🧩 Games are helping the New York Times thrive amid media chaos (Axios)

"The New York Times' puzzle and games were played more than 8 billion times last year, the company tells Axios exclusively, led by breakout hit Wordle, with 4.8 billion plays — and a Games app redesign is on the way," Alex Fitzpatrick reports.

🎮 Inside Warner Bros. Games' big live services push and doubling down on DC, 'Game of Thrones' and more franchises (Variety)

"As head of both streaming and gaming, [Warner Bros. Discovery CEO of global streaming and gaming JB] Perrette would, of course, love to see Max and Warner Bros. Games come together in some form. However, Max needs to learn to walk with TV and film programming before it can run with games," Jennifer Maas reports.

📺 Amazon is now charging Prime members extra for ad-free streaming. For some, that's a deal breaker. (WSJ)

"A presentation reviewed by The Wall Street Journal said Prime Video ads are expected to reach an estimated 159 million global viewers each month. That is significantly larger than the 23 million monthly active users that Netflix said this month its ad tier had globally," Suzanne Vranica reports.

6. Channel surfing

an illustration of a television that says "channel surfing" on the screen being held up by hands on a dark smoky background

☀️ Situational awareness: Kerry is at IAB's Annual Leadership Meeting in Marco Island, Florida, through Tuesday, moderating panels on streaming strategies and responsible media.

@tim_bays: Too early to rewatch the 49ers' epic NFC Championship Game comeback? 

@kerrymflynn: "When I Was Your Age: Life Lessons, Funny Stories & Questionable Parenting Advice from a Professional Clown" by Kenan Thompson. IAB ALM distributed free copies after the comedian closed out last night's programming.

✏️ Thanks to Michael Flaherty for editing and Katie Lewis for copy editing this newsletter.

Thank you for reading Axios Pro Media Deals! Please ask your friends, colleagues and future Reddit investors to sign up.

January 29, 2024

1 big thing: IPOs on the comeback trail