XLMedia has revealed the founders of its acquired CBWG business are set to exit the company as they approach the completion of their earn-out targets.

London-listed XLMedia acquired CBWG in 2020 in a strategic move that saw the affiliate enter the US sports betting market for the first time following the 2018 repeal of PASPA.

CBWG is a media publishing group focused on professional and college sports in the US. Prior to being bought, it owned and operated assets such as BetNewJersey.com.

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

A future consideration of up to an additional $9.5m was also agreed and has been paid out over the last three years, dependent on CBWG’s net revenue performance.

As part of that deal, CBWG co-founders Kyle Laskowski and Jason Ziernicki joined the business in newly created roles.

“As a founder, you build a brand not knowing what the future holds. In our case, it was joining XLMedia,” said Laskowski. “We are very proud about 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.”

Ziernicki added: “The last two years have been both challenging and rewarding as we’ve watched the business expand.

“As two of the company’s larger shareholders, we wish nothing but success for the company going forward.”

XLMedia CEO David King: “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.”

Following the departure of the duo, XLMedia has appointed current VP of sports media Kevin Duffy to the newly created role of VP of North America sports.

Duffy – who is the founder of XLMedia-owned premium brand Saturday Football Inc – will now be responsible for all US-facing sports content.

XLMedia CEO David King commented: “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,” he added.

XLMedia’s US sports betting revenue increased more than fivefold annually to $30.2m for H1 2022, up from just $5.9m in the prior-corresponding period.

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