Analysts Say $40B Kalshi and $15B Polymarket Are Likely M&A Targets
DKNG•Bernstein analysts predict that prediction markets Kalshi (valued at $40 billion) and Polymarket ($15 billion) will become takeover targets in a coming M&A wave. They highlight that DraftKings, Robinhood and Coinbase—each already entering prediction markets—could pursue acquisitions to gain distribution and scale.
1. M&A Targets Identified
Analysts at Bernstein predict that prediction markets Kalshi and Polymarket, which own proprietary exchange technology but lack broad consumer distribution, will become takeover targets in an industry consolidation wave.
2. DraftKings Among Potential Acquirers
DraftKings has already entered the prediction market space and could pursue acquisitions alongside competitors Robinhood and Coinbase to expand distribution and customer reach.
3. Valuations and IPO Plans
Kalshi is currently valued at $40 billion and Polymarket at $15 billion, with both firms planning IPOs in late 2026 or early 2027.
4. Consolidation Benefits
Industry consolidation is expected to reduce promotional spending, improve operational efficiencies, deliver economies of scale and create synergies across sports betting and finance platforms.
