The Sezzle Inc (ASX: SZL) share price is down despite the company announcing a new partnership with US media behemoth Barstool Sports.
At the time of writing, shares in the buy now, pay later (BNPL) provider are trading for $8.96 – down 0.5%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.61% higher.
Let's take a closer look at today's news.
Sezzle shares down despite Barstool deal
In a statement late last night, the Afterpay Ltd (ASX: APT) rival declared it and Barstool Sports, creator of podcast shows such as 'Call Her Daddy' and 'The Dave Portnoy Show', would become partners.
Sezzle will undertake marketing promotions to Barstool audiences, including sponsoring many of its shows.
"We chose Sezzle because they are not simply a payments company but a marketing organization that speaks the language of our fans," said Barstool CRO Deirdre Lester.
"Sezzle is an ideal partner for Barstool and is taking a 360 approach in reaching our audience."
"They provide a highly rated payments solution for our e-commerce business as well as reaching fans across several of our marquee brands and shows."
More than 70% of Sezzle users are millennials or from generation Z, according to the company. Barstool believes there's enough overlap between their markets to warrant the partnership.
Despite the news, Sezzle shares are not 'sizzling' on the share market.
Management commentary
Sezzle CEO Charlie Youakim said of the news:
Barstool Sports is a brand that epitomizes consumerism of the new generation. At Sezzle, we actively promote product innovation that reaches the needs of young shoppers.
Whether through credit-building or purpose-driven marketing campaigns, we understand and appreciate that shoppers today look for authenticity in the brands they love. Barstool Sports provides a bridge to millions of brand-loyal consumers looking to redefine payments.
Sezzle shares snapshot
Over the past 12 months, Sezzle shares have increased in value by 138%. Of all BNPL providers listed on the ASX with a market capitalisation above $200 million, Sezzle has seen the greatest return on investment for shareholders in that time.
