Enthusiast Gaming has announced that it has purchased Omnia Media, a broker for gaming influencers like Shroud, Pokimane and MrBeast, for $38 million in cash and stock.
According to Enthusiast CEO Adrian Montgomery, the company will now have 500 gaming influencers, which reach an estimated 25% of all YouTube users. Omnia, which is based in Los Angeles, is expected to add $53 million to Enthusiast’s revenue for a combined total of $83 million.
In the last three years, Enthusiast has taken over 12 gaming companies, including The Sims Resource, which now has more than two million monthly visitors, making it one of the largest female gaming destinations. Last August, Enthusiast joined Luminosity Gaming, which operates seven esports teams, including the Seattle Surge of the Call of Duty League and the Vancouver Titans of the Overwatch League, with over 70 million followers.
Montgomery said that two-thirds of 18 to 34-year-olds are playing or watching games each month, which gives gaming platforms direct access to a vital demographic for advertisers. Despite its profitable profile, Enthusiast has registered a quarterly loss of $4.2 million and a cumulative deficit of $63.7 million. In addition, the coronavirus pandemic has hit the esports industry hard, as countless spectator events have been canceled.
Enthusiast, however, expects things to turn around soon - especially since it’s seen a 30% increase in users across its platforms since the start of the pandemic. Enthusiast’s president, Menashe Kestenbaum, said, “Our end goal is not to keep cash in the bank. It is to be acquisitive, so we can aggressively own as much market share as possible.”
Source: Forbes
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