TheScore secures $40 million in funding

The mobile media company is going all-in on sports betting, but is also aiming to innovate on its core product.
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Toronto-based mobile media company theScore has announced an investment from Fengate Asset Management of $40 million to fund the growth of its media business, as well as its growing sports betting business.

The investment will result in an 8% subordinated debenture of theScore for Fengate. The transaction is expected to close Sept. 5. The debenture will enter into maturation five years from now and will accrue interest at a rate of 8% per year.

John Levy, founder and CEO of theScore, says the investment will enable the company to better execute on its goals to become more prolific in North America’s mobile sports gaming scene. The same day theScore announced the funding, it launched a standalone app for its sports betting book. Thus far, due to regulations, the service is only available in New Jersey.

While Levy would not offer up many details to MiC, he says  the funding is mainly centered around the gaming business, as Fengate has “close ties to the gaming industry.” However, he adds that the funding will enable greater technical improvements across the board for theScore’s core app, which focuses on data, scores and news. “Everything we do is about empowering the fan experience,” he says.

“We expect [Fengate] wants to see us continue to reinforce our market position as a leader in North American Mobile sports media,” he says, while at the same time growing in the mobile sports betting business.

Indeed, theScore just posted a record third quarter in terms of revenue, bringing in $8.5 million for the three-month period ending May 21. That performance was driven by strong performances in both Canadian and U.S. sales, as well as significant growth in user sessions and a 161% increase in social media reach.