Looking to expand beyond the company’s current roster of competitive gaming tournaments, 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"] just signed an agreement to snap up business-to-business managed games development company Victor’s Gold.
Specifically focused on monetizing a variety of in-game events, Victor’s Gold currently runs the Merc tournament series for Counter-Strike at various LAN centre arenas across the country.
Prior to the announcement, Victor’s Gold had been preparing for the next phase of growth by aiming to bring eSports gaming to casinos. That initiative will now take place under the UMG banner after the acquisition is completed, subject to regulatory approval.
Due to close within the next 30 days, the arm’s length deal will be paid through the issuance of 1,000,000 ESPT common shares at a price of $0.30 — representing a slight premium over the company’s current price of $0.23 a share.
Announcing the tournament services acquisition deal this morning, UMG’s Chief Executive Officer Dave Antony commented:
Victor’s Gold is the second acquisition revealed by UMG’s upper management this month, following news earlier in August that the company is also buying eSports event organizer Activate Entertainment LLC. That all-stock deal features similar terms, with 2.3 million shares issued at a price of $0.30 a share.
In other recent news, four of UMG’s Friday Fortnite players recently won world championship events, with 16-year-old Kyle “Bugha” Geirsdorf claiming $3 million as the World Champion.
Fortnite‘s fall pre-season is now kicking off for UMG tournament players, while the game’s official ranked competitive Season X matches launched earlier this month.
In conjunction with the barrage of new Fortnite matches, UMG has also teamed up with a frequent companion to the competitive gaming industry with an energy drink deal.
The company is now offering a discount through eSports energy drink brand G Fuel Energy for the launch of the fan-requested strawberry banana flavour through the end of the summer and into fall.
