With a rapidly growing young, digital, and global audience, esports is joining the big leagues. As lucrative investment opportunities arise daily, Goldman Sachs notes that media rights are set to become the industry’s largest source of revenue, followed by sponsorships.
The report by Goldman Sachs also highlights the “total number of minutes spent watching gamers play or discussing video games” on Amazon’s Twitch platform, which has increased “22 per cent from 2016-2017 to 355 billion minutes.”
In an industry that is already larger than Major League Baseball, there are some big players looking to make even bigger deals.
On that note, Enthusiast Gaming Holdings Inc. (TSX.V: EGLX) has recently entered into an arrangement agreement with J55 Capital Corp., a Capital Pool Company listed on the TSX Venture Exchange, and Aquilini GameCo Inc., a private Canadian company, to form one of the largest diversified gaming and esports media organizations in the world.
Enthusiast Gaming (EG) is on its way to building gaming communities of like-minded fans, providing sources of trusted gaming information, and producing engaging advertising experiences.
Moreover, EG owns the fastest growing gaming properties in North America with over 150 million monthly visitors across its network of websites, and YouTube channels. The company develops, produces, and broadcasts video game and esports events including EGLX, Canada’s largest video game and esports expo. They also have a platform of 80+ gaming content websites, 900 gaming YouTube channels and 150+ million visitors every month.
The company is strategically positioned to leverage a robust esports brand and its followers into a real monetization strategy by utilizing its strong gamer profile and data in a way no other siloed esports company can.
“Our vision has always been to build the largest, vertically integrated esports and gaming company in the world. The merger with Aquilini GameCo and Luminosity was a strategic decision that positions us as a dominant player in the gaming industry and gives us access to 44 million dedicated esports fans and as one of the largest esports franchises.”
— Menashe Kestenbaum, CEO, Enthusiast Gaming Holdings Inc.
Kestenbaum notes, “Through EG’s successful monetization strategy, the company will gain extremely valuable knowledge and information on the demographic that will revolutionize the advertising opportunities we can offer to brands.”
This merger is just the latest addition in EG’s arsenal, and it will provide solid ground for the company to efficiently and effectively scale its operations and take advantage of the massive esports industry. Add in one of Luminosity Gaming’s newest owners, international recording artist, Tory Lanez, and both companies have fuel to light up the market.
Read the full press release here.