Underdog Sold to U.K.’s IG Group in Potential $2.15B Deal
IG Group is making a big bet on Underdog’s prediction-market business.
Underdog, a New York-based prediction market firm, has been acquired by U.K.-based online trading company IG Group for a potential $2.15 billion deal. This sum is split into $1.1 billion upfront payment, $200 million in future earnings for shareholders, and up to $850 million based on Underdog's performance in 2028 and 2029. IG, which was founded in London in 1974, aims to bring Underdog's products to more audiences and more than double its U.S. revenues.
The deal is seen as a significant move for IG as it looks to establish itself as a leader in U.S. prediction markets, a rapidly growing retail trading market. IG CEO Breon Corcoran stated that Underdog's acquisition is one of the most significant opportunities across trading and entertainment. Underdog, which previously laid off more than 20% of its workforce in March, is now set to expand its operations under IG's ownership.
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