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.

Video Articles

Why $50 Silver, $4000 Gold Might Be Closer Than Anyone Thinks | Bradley Langille – GoGold Resources

Why Silver’s True Price Could Be Much Higher | Joaquín Marias – Argenta Silver

Gold Enters A ‘Stronger For Longer’ Phase | Richard Young – i-80 Gold

Recommended

Emerita Reports Aznalcollar Public Tender Trial Hearings Have Concluded, Verdict Expected This Fall

Antimony Resources Completes 16 Hole Drill Program At Bald Hill Antimony Project, Assays Pending

Related News

Enthusiast Gaming Posts $43.3 Million In Revenue, $12.4 Million Net Loss For Q3 2021

Enthusiast Gaming (TSX: EGLX) reported on Wednesday its third quarter financial results, posting revenues of $43.3...

Thursday, November 11, 2021, 10:59:00 AM

Enthusiast Gaming: Canaccord Raises Price Target To $4.00

Yesterday morning, Canaccord Genuity’s Robert Young raised their 12-month price target on Enthusiast Gaming (TSX:...

Thursday, December 3, 2020, 11:13:00 AM

Enthusiast Gaming Sees Canaccord Give Slight Lift To Price Target

On May 16th, Enthusiast Gaming (TSX: EGLX) reported its first quarter financial results. The company...

Sunday, May 22, 2022, 05:19:00 PM

Enthusiast Gaming: Canaccord Updates Model Following Conference

Recently Canaccord Genuity sat down with Enthusiast Gaming’s (TSX: EGLX) C-suite to talk about the...

Friday, May 7, 2021, 03:17:00 PM

Board Game: Enthusiast Gaming Top Shareholder Calls For “CEO Upgrade,” Firm Asserts Claims Are “Misleading And Baseless”

Enthusiast Gaming (TSX: EGLX) is facing a potential internal power struggle at the upcoming annual...

Wednesday, May 25, 2022, 02:19:00 PM