Millennial Esports (TSXV: GAME) announced this morning that they’ve entered a binding letter of intent to acquire a YouTube channel for $735,000 in cash and common shares. The channel, LetsGoRacing, will see 51% of its ownership be acquired by the esports and gaming issuer.
LetsGoRacing has achieved over 40 million views since its launch in 2013, and has seen a combined 4.13 million hours of viewership in that time period. The firm is focused on motorsport and esports racing, and creates live video content of motorsports events. LetsGoRacing and Millennial Esports have previously worked together, with the channel highlighting content from Millennial’s World’s Fastest Gamer event.
Total cash consideration in exchange for 51% of the firm will consist of $513,000, while a total of $222,000 is to be paid via common shares. The shares will be issued at a price that is the greater of the trading price on the signing of the LOI, and the trading price on the signing of the definitive agreement.
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While the sale is subject to the two parties entering a definitive agreement, the transaction is anticipated to close by the end of the month.
No revenue figures were provided for the YouTube channel, nor was a path to monetization.
Millennial Esports is currently trading at a price of $0.50.
Information for this briefing was found via Sedar and Millennial Esports Corp. 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.
