Category: Marketing

Esports Stock Continues its Uphill Trajectory

Market Watch: “Shares of Esports Technologies Inc. ebet soared 36.5% in premarket trading Friday, adding to the 6-fold gain in the previous session, as investors continued to cheer the public debut of the Las Vegas-based online gambling company. The stock’s first trade Thursday morning was at $21.00, or 250% above the $6.00 a share initial public offering price, and it continued to climb in volatile trading to close at $36.42. At that closing price, the Esports’ market capitalization was about $460.7 million, compared with the market cap of $75.9 million at the IPO pricing.”Based on premarket trading Friday, the company is on track to open with a market cap above $600 million.”

“The frenzy for Esports shares occurred on a day that shares of Applovin Corp. app, with a valuation of $28.6 billion at the IPO price, closed 18.5% below its IPO price, and TuSimple Holdings Inc. tsp, valued at $8.5 billion at its IPO price, closed right at its IPO price. The Renaissance IPO ETF ipo rose 1.3% on Thursday while the S&P 500 spx gained 1.1%.”

Guild Esports Becomes First Public Esports Company in London IPO

CNN: “A company co-founded by David Beckham plans to become the first esports franchise to list on the London Stock Exchange, taking advantage of the growing popularity of online gaming.”

Guild Esports, a UK-based owner and developer of esports teams, confirmed plans for an initial public offering in a statement Wednesday. The company said it wants to build a global sports franchise modeled on the English Premier LeagueNBA and NFL. It will float 40% of its shares next month and hopes to raise £20 million ($25.9 million) to recruit new players and invest in the business.”

“A stock market listing will provide Guild Esports “with the caché, credibility and capital” to fulfill its ambition to become one of the world’s top 10 esports franchises within three years, executive chairman Carleton Curtis said in the statement.”

Twitch’s New Esports Directory Allows Easier Navigating For New Viewers

TechCrunch: “Twitch is doubling down on esports in this new era of social distancing as a number of traditional sporting events have been cancelled. The company this week introduced a new esports directory on its site that will make it easier for viewers to find live matches, information on players, games with active competition leagues, a directory of players and more.”

“The goal, Twitch says, is on making Twitch easier to navigate with regard to this sort of gaming content — particularly at a time when its site is seeing a surge of growth due to the COVID-19 lockdown. According to a recent report from Streamlabs, the pandemic has since pushed Twitch to reach all-time highs for hours watched, hours streamed and average concurrent viewership in the first quarter of 2020.”

“Notably, it surpassed 3 billion hours watched for the first time — a significant milestone.”

Does eSports Depend on Franchising?

As eSports leagues and teams look to grow, a central question becomes one around business models. Many participants are considering the pros and cons of franchising.

Esports Observer: “Franchising has been an important tool in getting traditional sports investors involved in esports in recent years, but the effectiveness of the system itself conversely remains a controversial and hotly debated topic within gaming.”

“Proponents of the move say that franchising has added investment, a more sophisticated business structure, stability, expertise, and enterprise value to esports. That’s because the ubiquity of the franchising model in traditional sports has helped make the structure of esports leagues more understandable and thus more alluring to prospective owners and advertisers.”

“But questions remain about whether some of the franchise fees were exorbitant, whether geo-location is the best way to unlock fandom for franchised leagues, and whether some games that are currently not franchised would be best served by staying that way.”

Merch Alert: Walmart Now Selling

Dexerto.com: “Walmart is now hopping on board the esports merchandise train, stocking jerseys and accessories from some of the world’s most recognizable esports brands.”

“The Esports Fan Shop stocks items from the North American League of Legends Championship Series (LCS), the Overwatch League, the ESL Shop, and more. This means fans can pick up jerseys from Cloud 9, Ninjas in Pajamas, the San Francisco Shock, and over 40 more teams.”