Sign up USA
Proactive Investors - Run By Investors For Investors

GAME expands eSports business with new acquisition

Spanish firm SocialNat becomes GAME’s second eSports purchase, as part of the retailer’s ongoing diversification.
GAME expands eSports business with new acquisition
GAME's Multiplay runs the Insomnia gaming and eSports festivals in the UK.

-- adds Insomnia stats--

GAME Digital (LON:GAME) has revealed its latest move in its diversification with the acquisition of Spanish eSports group SocialNat.

It is understood that it was a cash purchase, of less than £500,000. Whilst not a large sum, the deal is deemed to be a strategically important in the context of GAME's growing eSports business. 

The Spanish company has more than 150,000 registered users and has been involved in a number of high profile eSports events, including the Spanish qualifying for the Electronic Sports World Cup at the 2015 Madrid Games Week.

It is the retailer’s second eSports purchase, following on from the £20mln deal for live events group Multiplay last March. And it is part of the group’s effort to become more involved in the ‘gaming experience’ beyond the point of sale.

“ESports present one of the most exciting developments in the industry and the acquisition of SocialNAT will help to accelerate our plans in this area, particularly in Spain," said Pablo Crespo, managing director of GAME Spain.

Through the Multiplay business, GAME operates the Insomnia gaming and eSports festivals (of which five are planned for 2016).

An Insomnia event at the Ricoh Arena in Coventry last year sold 37,000 tickets, had over 10,000 players taking part and registered over one million video plays of event coverage totalling more than 11.5 mln minutes watched

GAME highlighted in today’s stock market statement that eSports was estimated to have generated some $748mln of global revenue in 2015, and it is forecast to be a $1.9bn industry by the end of 2018.

Investors in London have become increasing aware of the emerging eSports phenomenon - which is already hugely popular among teens and young adults – thanks in part to the December 2014 stock market float of AIM quoted Gfinity.

Gfinity via a bespoke ‘arena’ at a Fulham cinema hosts eSports tournaments, and it also broadcasts eSports events online.

The AIM group, which is currently valued in the market at around £15mln, for example is hosting the European FIFA 16 ‘Play Like a Legend’ championships at its London venue between February and May. At the events, professional eSports teams will compete for a total prize pot of around $29,000.

Shares rose 4% to 114p.

View full GMD profile View Profile

Game Digital Timeline

January 14 2015
May 19 2014

Related Articles

H&T Pawnbrokers store
November 15 2017
“We have delivered a strong trading performance during the second half in the key segments of Pawnbroking, Retail and Personal Loans”
Flying Brands
March 07 2018
Flying Brands has signed a deal for the sale and distribution of its StoneChecker software in South Korea

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use