Infinite Reality, a creator of AI-powered experiences, has acquired the Drone Racing League for $250 million. The acquisition, which increases the company’s valuation to $3.5 billion, further expands its portfolio in the virtual reality space.
Infinite Reality has ties to numerous technologies—many with unrealized potential—from digital worldbuilding to blockchain-based assets and social media platforms that share ad revenue with users.
“The future of sports and entertainment involves new and disruptive formats that are wildly more immersive,” John Acunto, CEO of Infinite Reality, said. “Now, with our combined assets, [Infinite Reality and Drone Racing League] are set to usher in a new era of sports entertainment, powered by cutting edge tech and fueled by fandom, creativity and community.”
Infinite Reality had planned to go public in early 2024 via Newbury Street Acquisition Corporation while touting its AI capabilities. The companies were granted a six-month extension to finalize a deal by stockholders in March.
In 2022, Infinite Reality added esports teams Rogue and the London Royal Ravens (which later relocated to North Carolina) to the mix, as well as a content production studio and talent management firm focused on online personalities. Many of IR’s deals have taken the form of stock transactions.
DRL and Infinite Reality will integrate their teams as part of the transaction. DRL CEO & Founder Nicholas Horbaczewski will be promoted to Infinite Reality Global President and DRL President Rachel Jacobson to Infinite Reality President, Global Business Ventures and Partnerships.
Founded in 2015, DRL touted a global footpint of 320 million households during its 2022-2023 season given its media distribution deals, while tallying 260 million digital views globally on race content. Its TikTok account comes with 5.4 million followers.
DRL has long explained itself as a tech company first, with recent pushes into immersive content and video games. The U.S. Air Force has been its longest running sponsor.
“The league engages a coveted audience of young, high-energy Tech-Setters who have a passion for flight, innovation and technology,” U.S. Air Force Brigadier General Christopher Amrhein said in a statement last July.
DRL has previously received investments from notable sports, media and tech entities, including Stephen Ross‘ RSE Ventures, Liberty Media, ISOS Capital, WWE, CAA Ventures, Lux Capital and Hearst Ventures. Other partners have included Google Cloud, Allianz and T-Mobile, as well as title sponsor Algorand.
(This story will be updated.)
