FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “Torque Esports Corp. to Acquire UMG Media Ltd.”
Torque Esports Corp., formerly Millennial Esports Corp. (TSXV: GAME) (OTCQB: MLLLF) and UMG Media Ltd. (TSX-V: ESPT) have entered into a binding letter of intent (the “Letter of Intent“) dated October 21, 2019 whereby Torque will acquire UMG (the “Transaction“), which is an arm’s length transaction. The Transaction combines two highly complementary businesses in the esports and gaming space.
UMG Online is an eSports website, a high-quality next-generation gaming experience. With origins as a LAN event provider, the company is now set to branch out into the online gaming world. The daily source for tournaments and ladders, offered on multiple games across various platforms.
The company’s professional staff will provide the best and fairest gaming services for all users. As gamers themselves, UMG understands the mechanics of good gameplay and what is needed to ensure an enjoyable, competitive atmosphere. UMG Online is community based, users and their needs will always come first.
The widespread and rapid emergence of the gaming industry has helped propel it into mainstream media. According to Nielsen, 64% of the U.S. population that is 13 years or older play video games on a device. Moreover, the majority of that population also tends to watch gaming live-streams or videos on large media platforms such as Twitch or YouTube. Specifically, 48% of YouTube gamers say they spend more time watching gaming videos than actually playing the game, according to data collected by Think with Google. The gaming media market has vastly grown because it provides users with an immersive experience where they can interact with the video maker and the community. Ipsos reported that 56% of YouTube gamers say the platform is a way for them to connect with other gamers in similar communities, creating a bond through gaming. In particular, viewers mostly watch videos like “let’s plays,” walk-throughs, reaction videos, and reviews. Overall, the media segment to the gaming industry is massive because of the large audience appeal. Thousands and thousands of popular channels upload videos across different genres such as shooters, adventure, action, horror, strategy, and multiplayer. And while many of these viewers tune in for casual gameplay, the competitive side of gaming has also grown rapidly in comparison to previous years. Competitive gaming or also known as eSports has existed for quite some time, however, in recent years, the segment rose to prominence because of astronomical multi-million dollar tournaments. In 2018, League of Legends World Championship made historic milestones and attracted over 74.3 million viewers. Meanwhile, Dota 2’s The International drew in 52.8 million viewers, while CS:GO’s Eleague Major had over 49.5 million viewers. Similarly, all three of these tournaments boasted multi-million dollar prize pools for which dozens, or even hundreds, of players would compete for. Overall, just like any other media industry, the audience is key to the future growth of this market. And with the accelerating popularity of eSports, the industry is becoming a source of mainstream media for millions of people. As of 2018, the global eSports monthly audience was estimated to be approximately 167 million. However, by 2022, the audience is expected to reach 276 million, according to data compiled by Goldman Sachs.
Professional gamers play at an advanced skill level that the majority of players cannot replicate. Generally, these individuals play a single game and practice for hours upon hours on a daily basis. For example, Epic Games held its first Fortnite World Cup this past summer, which boasted a USD 30 Million prize pool. In order to qualify for the World Cup, players around the world had to compete for coveted and limited spots. Millions of players worldwide went through several weeks of daunting matches, however, only the top 100 were able to secure a position to compete for the grand prize. Many players exerted countless hours of practice, however, even more, were unsuccessful. The determination to secure a limited spot is what makes tournaments highly competitive and exhilarating for audiences to watch. And as the viewer base continues to grow, organizations and media providers are expected to generate additional revenue streams. In turn, the additional revenue can then be used to create larger prize pools each year for tournaments. Consequently, industry experts believe that the eSports industry will rival traditional sports because of its growing audience. “I believe esports will rival the biggest traditional sports leagues in terms of future opportunities, and between advertising, ticket sales, licensing, sponsorships and merchandising, there are tremendous growth areas for this nascent industry,” said Steve Borenstein, Chairman of Activision Blizzard’s Esports Division and Former Chief Executive Officer of ESPN and the NFL Network.
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