Online tournament hosting and eSports content distribution company UMG Media Ltd. [stock_market_widget type="inline" template="generic" color="default" assets="ESPT.V" markup="(TSXV: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] is about to see a change of ownership as the company plans to be snapped up by rival network Torque Esports Corp. [stock_market_widget type="inline" template="generic" color="default" assets="GAME.V" markup="(TSXV: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"](TSX VENTURE: GAME, [stock_market_widget type="inline" template="generic" color="default" assets="MLLLF" markup="(OTCQB: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"].
The recently announced arm’s length deal will require at least 66% UMG shareholder approval at a special meeting in December, and is conditional on Torque also acquiring a 51% stake in Allinsports SRL.
If approved by shareholders and the deal overcomes all regulatory and conditional hurdles, Torque will then issue 4,329,445 common shares in exchange for existing UMG shares.
Torque Esports Chief Executive Officer Darren Cox commented on the pending acquisition deal:
UMG recently extended an existing partnership with the National Association of Broadcasters, and also kicked off a major Gears 5 online broadcast launch event last month. That former deal saw UMG’s subsidiary Activate Entertainment LLC hosting a showcase at the National Association of Broadcasters New York show last week.
Torque has stated its intention to pair UMG’s current and upcoming content with the recently acquired Let’s Go Racing YouTube channel.
Torque Esports just changed names and consolidated existing shares last week after receiving approval at an annual investor meeting. The company had previously conducted business under the name Millennial Esports Corp.
The name change was approved to reflect the company’s shift towards the racing side of eSports, in addition to running a data collection and advertising wing.
That latter segment of Torque’s business will be also utilized with today’s announced acquisition plan, as the company will add UMG’s traffic to the Stream Hatchet data analysis service.
Torque / Millennial has been on an acquisition spree so far this year, also snapping up a 51% stake in the online racing resource DriverDB.com to add additional racing eSports metrics to the Stream Hatchet service.
