eResearch | This week, Vindex, a leading Esports infrastructure platform, announced the acquisition of the Belong Gaming Arenas brand from GAME Digital PLC. The deal reportedly valued Belong Gaming at US$50 million. Belong Gaming operates Esports tournaments and events in physical gaming centres with video game PCs and consoles.
GAME DIGITAL
, a video game retailer in the U.K. and Spain, with over 500 brick-and-mortar storefronts, launched Belong Gaming in 2016 to build physical “arenas” for local gamers and fans to meet up and play games together.
Vindex plans to invest US$300 million into Belong Gaming over the next five years, to be used towards opening more than 500 arenas in the U.S and an additional 1,000 arenas internationally through licensed operating partners.
Vindex’s subsidiary, Esports Engine, is expected to design and operate the Esports events and tournaments held throughout Belong Gaming’s network of arenas.
Game Digital will continue running the gaming arenas as a licensed operator in the U.K. and Spain, while Vindex will be provided an exclusive license agreement for the Belong Gaming brand within those specific regions.
Martyn Gibbs, CEO of GAME Digital, is expected to join the Vindex management team as CEO of Belong Gaming, to lead the roll-out of the new arena locations in the U.S. and internationally.
Mike Sepso, CEO of Vindex, said “The acquisition of Belong [Gaming] and Martyn’s leadership will allow us to bring the professional esports experience to casual and amateur players in their hometowns across the country and around the world, connecting more players everywhere at a time when communities truly need to be closer together”.
Vindex
Vindex is an Esports company focused on providing proprietary technology to Esports publishers, leagues, and teams, for enhancing viewer experience through various solutions such as program design and management, media broadcasting, and events production.
Vindex operates through two main Esports solutions, (1) Esports Engine, a competitive Esports program development and design company, and (2) Next Generation Esports, an Esports media and events production company.
Vindex was launched in 2019 and funded by Mike Sepso and Sundance DiGiovanni, two Esports experts best known for founding the Major League Gaming (“MLG”) professional Esports organization, which was acquired by Activision Blizzard (NASDAQ: ATVI) for US$46 million in 2016.
At its launch last year, Vindex announced a US$60 million capital raise in a Series A funding round, to be used towards building a first-of-its-kind global Esports infrastructure platform. In addition, Vindex also announced the acquisition of Next Generation Gaming and the launch of Esports Engine.
Early this year, Vindex announced an exclusive partnership with IMAX Corporation (NYSE: IMAX), a Canada-based cinema operator with 1,541 proprietary IMAX theatres in 81 countries, to establish a leading theatrical distribution platform focused on Esports.
Vindex’s board includes Steve Bornstein, the former CEO of ESPN and the NFL Network, and Joel Greenblatt, the Founder of Gotham Asset Management.
Esports Industry
The Esports industry is forecasted to reach 276 million viewers globally by 2022, an audience larger than traditional sports leagues such as the National Football League. As a group, 18-27 year olds now watch more computer games than traditional sports.
According to Goldman Sachs Investment Research, the global Esports betting market is expected to reach US$17.2 billion this year, growing at a 44% CAGR, attributed to an influx of Generation Z viewers.
Other recent eResearch articles related to Esports:
- July 22: “Video Games & eSports Betting Update – Sony Invests US$250M in Fortnite and Embracer buys Sweden-based Saber Interactive for US$525M”
- June 24: “eSports Betting Industry Update as Capital Markets Activity Increases & Companies Innovate to Grab Market Share”
- June 22: “Electronic Arts Live Fireside Chat – CEO Speaks On Three Pillars of Growth for the Future”
- June 15: “Kuuhubb – Fiscal Q3/2020 Financial Results Below Our Estimates”
- June 1: “Zynga Acquires Turkish Mobile Games Developer Peak Games for $1.8B, Boosting Daily Active Users by 60%”
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