Q&A: Better Collective’s new co-CEOs on their vision for the affiliate’s future

Better Collective is looking ahead to a new future. Yesterday, 30 April, EGR exclusively revealed that the business’ COO Christian Kirk Rasmussen would be stepping up to become co-CEO alongside Jesper Søgaard, as well as a wide-ranging business structure change set to be implemented.

The plans, which had been in development for some time, will allow both Kirk Rasmussen and Søgaard to focus on the years ahead. After more than 35 acquisitions since 2017, Better Collective is looking to tap into the potential it has managed to gobble up, including pledging further funding to leading brands such as Action Network to drive results.

For a company that has remained at the apex of the EGR Power Affiliates for eight years, the shift represents one of the largest business decisions made by the duo since they founded the now dual-listed business together in a German hostel more than 20 years ago.

Here, the pair explain the rationale behind the changes and what they hope to achieve in the coming years, together as co-CEOS.

EGR: What do you think the external market reaction and internal reaction will be to this change?

Jesper Søgaard (JS): It’s about the excitement of allowing ourselves to add even more resources to the parts of the business where we really think we can grow a lot in the coming years. The challenge with our previous structure was that, from a skill set perspective, the same things were done within different departments in different geographies, and not really allowing for scale.

We will see as a big unlock to really allow for a global organisation with a clear mandate and an ability to set a direction and basically have less redundant resources because of the new structure.

EGR: So, with the move to equip some core brands with more investment, the inverse is the non-core brands. What happens to them? Is it a potential for selling assets?

JS: It’s a prioritisation of the investment areas. The way we go about that is an acknowledgement of assets that have done well but are not the growth assets for the next 10 years. We will sustain them, and make a judgement call on how much resources should be used for sustaining them.

With the development of AI content, in a leaner way, we can make them continue. But this is us making a prioritisation of brands, and obviously it will mean that not all will get the same kind of attention. And that is intentional.

EGR: With the move to a new business structure, will there be redundancies in addition to the cuts last year?

JS: It’s not really comparable to what we did last year. This [change] is on the back of a very long process of reallocating resources. This is now where we think about adding resources to a new business innovation that historically has lacked the focus and priorities.

Christian Kirk Rasmussen (CKR): If we take Action Network for example, I think the new shape of Better Collective and having it [Action Network] as one of the flagships means we can deploy the resources the brand deserves and unlock a lot of potential.

EGR: Can you explain what that innovation could look like?

CKR: We are doing a lot. I know everyone says that, but now with the new structure we are in the best shape. We are putting a lot into AI content, as just one example of where we are investing.

JS: Action Network can also be the part of the overall betting experience for users, not just Action Network users but people in general consuming sports media. We want to make it as convenient as possible for customers to place a bet. We have a pretty unique role where we can help our sportsbook partners feel more engaged with their customers, and we can drive this more convenient bet placement experience for our audience.

EGR: On AI, how is it being used across the business? Is it as simple as content creation or are there other facets where it is being used?

CKR: It’s also about using all of the data we have. We have so much data, I don’t know how many odds integrations we have at this point. We are putting all this into one place. In the weeks leading up to the Super Bowl, we had eight million bets placed through Action Network’s QuickSlip feature, where we were making it simpler for users to get bets on.

JS: We created that tailored advice and execution experience for customers, which I think is not just a trend in our industry but across tech. That is a mega-trend with AI supporting consumer behaviour and navigation, and that’s where we see big potential for the business.

EGR: Do you have any worries about the use of AI, given there are concerns over job roles being replaced?

JS: With big power comes big responsibility. I think that’s true for AI, and nobody should close their eyes to that. It’s extremely powerful and will only become more powerful. On a personal note, I’m definitely aware of that and it is something we as a society need to consider. Taking the Better Collective perspective, it also allows for a lot of innovation. But I do acknowledge that AI is very powerful, and we all need to recognise that.

EGR: Given the plans to invest in existing assets, are you ruling out major M&A in the short term? Or if an opportunity too good to pass up presents itself, will you take the chance?

JS: I think we always consider optionality in the business. It can be in a market, but it could also relate to how we can deploy cash. Right now, the focus is on harvesting and realising the potential of what we have acquired. We’ve bought some really amazing brands where we see so much potential, and we’re now setting ourselves up to deliver on that potential and making the most of that.

We believe long-term M&A is definitely still an important part of our strategy. It’s more of a timing aspect. There are many factors and elements. It comes down to price and fit, both in terms of organisational and strategic fit.

Right now, I think there’s a very high barrier for an acquisition to meet that. We are not ruling out that if something super attractive, with the right fit and the right price came along, then we’d act. We can act with our balance sheet, but it’s just not the plan right now.

EGR: In other words, Better Collective is comfortable with its capabilities and doesn’t need to buy something it doesn’t have?

JS: That’s correct. I’m proud and excited by what we have been able to create as a foundation for Better Collective via M&A. We have so many strong brands in many attractive markets that have given us a truly global nature. We feel we have all it takes to succeed. Is there stuff being built out there? Obviously, there always will be. But we are pleased with what we have and what we can do with those assets.

EGR: Looking at the co-CEO roles, is this a happy moment for the pair of you, having remained in business since founding Better Collective more than 20 years ago?

CKR: I’m really excited about the years to come. In terms of how we’re setting up the organisation, with me being able to focus on long-term growth, this period we are entering is super exciting.

JS: I think it is a natural evolution of Better Collective and how things have always been with Christian and I. We are in this together and have always been. In that sense, it’s natural with our mindset to now be co-CEOs.

EGR: Why was a co-CEO model chosen and not, for example, one of you becoming executive chair and the other the sole CEO?

JS: We have always had an independent board who can challenge us so we don’t end up in an echo chamber. Since 2014, when we first established a board, it has been crucial for us to be challenged. With the co-CEO model, we know exactly between ourselves the division of responsibility.

EGR: Finally, as we look at the competitive landscape in the affiliate market, was this business change was made with a view to setting out a new strategy?

JS: No, this is about that potential that we feel we have in Better Collective. This has been coming for a long time. We’ve known we’ve wanted to do this to set the company up for success. It is all about allowing for further investment with a simplified organisation, with a 100% focus on Better Collective.

The post Q&A: Better Collective’s new co-CEOs on their vision for the affiliate’s future first appeared on EGR Intel.

 Jesper Søgaard and Christian Kirk Rasmussen explain how the firm’s new structure will set it up for success following a whirlwind period of M&A and expansion, with plans for concentrated investment across core brands and AI
The post Q&A: Better Collective’s new co-CEOs on their vision for the affiliate’s future first appeared on EGR Intel.