Bloomberg Backs Off From Playing The Numbers Game
Bloomberg Backs Off From Playing The Numbers Game: STATS Does The Math
News and data provider Bloomberg is in news this time. The financial data firm and news agency has sold its Bloomberg Sports Analysis Division to data company STATS LLC. This marks the end to sports related number crunching for the news agency wherein its 4 year foray into this field now comes to an end.
When it comes to numbers regarding the financial aspect of the deal as well, Bloomberg has displayed reticence. The company declined to comment on the terms, yet sources close to the company indicated that the price could be between USD 15 to 20 million.
STATS has shown every willingness to hold onto the numbers game. Consider that this is the first deal by the firm since its acquisition in June by Vista Equity Partners. When it comes to the number's game, one man's pill is another man's poison. STATS is very happy with the acquisition. Vista Equity Partners is a private equity company with USD 13 billion in capital commitments.
STATS touched base with Bloomberg Sports following the acquisition. According to Bloomberg Sports President Bill Squadron, things marched very quickly from there to a new starting point. He has been quoted as saying “From there, things moved very quickly.” Squadron will now get his orders from STATS CEO Gary Walrath. He will be staying on with Bloomberg Sports.
The purchase will enable STATS to put the quantitative models and algorithms formulated by Bloomberg Sports to the its real time historical sports information. STATS is hoping to cash on to predictive modelling wherein data is used to predict the results of the matches. Squadron is motivated to lead his team to this new goal.
"We've built a really strong team of mathematicians," Squadron has been quoted by a Reuters report as saying "That's going to be a really big growth area, to drive it together and get there a lot quicker." Founded in 2010, Bloomberg Sports has grown to include about 30 engineers and analysts. Analytic tools developed by this sports division has been used to fuel fantasy sports playing and also help the bookies along the way apart from professional teams and leagues which use the data to improve their performance and skills.
STATS was founded in the year 1981. This Illinois based company provides fantansy sports services apart from scores and (you guessed it) statistics.
STATS CEO Gary Walrath has been quoted as saying that adding Bloomberg Sport's' "talented team and compelling portfolio of products significantly bolsters our global strategy."
As part of this deal, STATS will acquire the stake in the sports division of Bloomberg. Bloomberg Sports had been acquired by IMG Worldwide 2 yeara ago in a deal which was estimated to be around USD 6 to 8 million for 1/3rd of the venture. Given the untapped potential of predictive modelling, STATS has clearly done the math before making the acquisition.
