Enthusiast Gaming has announced that it will become a publicly traded company on the Nasdaq stock market, taking a step up from the Toronto Stock Exchange.
The Toronto-based company brings together publications, user-generated content, advertisers, events and influencers who are all excited about the game. The company owns a network of 100 websites such as Destructoid, Nintendo Enthusiast, and The Escapist. It has more than 1.000 YouTube channels and the Luminosity Gaming eSports team. Enthusiast Gaming content reaches more than 300 million players per month globally, including 65 million mostly millennial and Gen Z gamers in the United States
By getting on the Nasdaq, the company's stock could be traded more broadly, it could attract more attention, and that could also help it raise more money when needed.
The company gained much of its strength in video with its acquisition this year of Omnia Media for $8,5 million in cash and 18,25 million shares, or about $24 million. That deal added 1.000 YouTube gaming channels, 30 weekly shows and more than 500 gaming influencers.
“Omnia has super engaged viewers watching over 3,2 billion videos per month,” he said Adrian Montgomery, CEO of Enthusiast Gaming. “What we're really interested in is that this addition to our platform of websites, online communities and sports teams has given us access to high-quality video inventory. And we've added what we think is one of the most valuable video inventories on the internet, so we're really excited about that."
Montgomery said Omnia Media's revenue could help push the company beyond $77 million in revenue in 2020, up from $61 million in 2019. An important boost that could push the company to also develop media platforms. online betting on the model of 888sport.
“If you have a list of 500+ influencers, you're good to go. The fastest growing and soon to become dominant marketing channel is influencer marketing. It is $9,5 billion and growing 36% per year. This is how Kim Kardashian became a billionaire, as an influencer. We have access to over 500 influencers, we can bundle them into integrated sponsorship deals alongside our website assets and eSports assets. This is proving to be a truly unique selling proposition.”
As for Luminosity Gaming's esports team, physical events moving into online events are a drawback. But Montgomery noted that he was able to get more mindshare during the pandemic.
“As Woody Allen said, 95% of life happens,” he said. “And eSports was able to show up during the pandemic where traditional sports weren't able to. So eSports is becoming a disproportionate mindshare.” Think what would happen if all these influencers started suggesting sports (or e-sports) bets online. In Italy online betting it goes strong, but elsewhere it reaches stratospheric figures.
Enthusiast Gaming partners with brand advertisers such as Grub Hub, Lego, HP Omen, State Farm Insurance, US Airforce and Activision with customized advertising campaigns.