Genius Sports CEO Mark Locke is pushing back after investors rattled the company’s stock over its $1.2 billion deal for digital sports and gaming media network Legend. In a letter to shareholders released Wednesday (February 18), Locke argued the purchase marks a long-term strategic shift, not a quick play on affiliate traffic.
He conceded that Wall Street’s response has been uneven. Still, he told investors the skepticism feels familiar. In past years, he noted, major moves by Genius Sports, from locking up official league data rights to signing long-term partnerships with top sports organizations, were also met with doubt before paying off.
Some people think we bought a simple affiliate business. Our view is different. We bought a participation layer built on two decades of technological investment that sits between official data infrastructure and the moment of transaction. So, let’s be clear about what we have bought and why.
Mark Locke, Genius Sports CEO
Locke stressed that the company wasn’t simply adding a media brand to its portfolio. He described Legend instead as a technology-driven platform built around deep user engagement and behavioral insights tied to sports and online gaming audiences. Its network, which includes Covers.com, Casino.org and Casino Guru, generated 320 million visits from 118 million unique users in 2025, with many of those users returning frequently.
“The real value is the technology and behavioral intelligence that powers how that audience participates,” Locke wrote, framing the asset as a bridge between official sports data and the moments when fans choose to engage or transact.
Genius Sports’ strategic bet on participation and data amid Legend acquisition criticism
In the letter, Locke took aim at critics who have labeled Legend an “affiliate” business. He argued that the description misses the bigger picture. Rather than relying on low-grade referral traffic, he said, Legend’s platforms gather detailed signals about user intent and behavior, information that can strengthen monetization over time and expand well beyond traditional ad models or search-driven clicks.
He also pointed to advances in artificial intelligence, saying richer participation data becomes more powerful as AI tools improve. With better personalization and faster feedback loops, he suggested, the combined company can drive stronger commercial performance for sportsbook operators and advertisers alike.
At one point, Locke characterized the merged business as a “new asset class in sport,” tying together wider audience reach with better data insights. In his view, it positions Genius Sports at the center of how fans watch, wager and interact with live events.
The deal itself was announced in early February. Genius Sports agreed to pay up to $1.2 billion for Legend, including roughly $900 million at closing and as much as $300 million in earnouts tied to future financial results. The purchase pushes the company beyond its roots in official data and betting infrastructure and deeper into digital media and performance marketing.
However, shares of Genius Sports fell sharply, at times dropping more than 25%, as analysts weighed the price, potential integration challenges and near-term valuation pressure. Some firms reiterated Buy ratings, arguing the move unlocks durable growth. Others warned that execution risks could cloud results in the short run.
Locke’s message to shareholders was that the strategy is built for the long haul, and he expects sustained execution to prove the market wrong once again.
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