Enthusiast Gaming Closes Steel Media Purchase

Enthusiast Gaming (TSXV: EGLX) announced this morning that it had completed the recently announced acquisition of Steel Media, a mobile gaming and live events firm. The transaction was originally announced on September 18 by Enthusiast Gaming.

In total, the purchase brings an additional 20 mobile gaming websites and 25 live mobile events to Enthusiasts ever growing roster of assets, including pocketgamer.com and appspy.com. In total, Enthusiast now boasts that it has ownership of 100 gaming websites, 900 YouTube channels, 7 professional Esports teams and more, suggesting that its ability to focus on a single asset or platform is extremely limited in terms of funding and time allocation.

Despite this, the firm boasts that it now has over 200 million monthly visits, with each visitor generating revenue of approximately $0.11 for the firm – a figure small on an individual basis, but significant when analyzing everything as a whole. It’s unclear how the latest acquisition will impact these numbers, as no revenue figures were provided for Steel Media.

In total, Steel Media was acquired for approximately US$3.4 million. US$2.9 will be paid in the form of cash, with $1.9 million being paid upon front upon closing of the acquisition, and an additional $1.0 million to be paid on the one year anniversary of closing. US$500,000 was also paid in the form of common shares of Enthusiast Gaming at a price of $1.64 per share. Steel Media may also be eligible for a performance bonus of up to US$500,000, however it was not stated what the performance targets were for such an arrangement.

Enthusiast Gaming is currently trading at $2.26 on the TSX Venture Exchange.

Information for this briefing was found via Sedar and Enthusiast Gaming. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.