Engagement is up with the video game industry, especially esports, which is proving that it can be as enjoyable at a social distance as it ever was among live crowds.
When investing into the tech industry, specifically anything related to gaming, revenue and company growth can come from almost any angle. There is a lot of excitement around esports lately, given the entertainment industry as a whole has gotten a bigger audience thanks to social isolation practices, esports is also gaining in popuarity both among new fans and businesses.
Canadian tech Company YDX Innovation Corp. (TSX: V.YDX, OTC: YDRMF, Forum) has bolstered its growing esports division, having completed the transaction for its acquisition of arm’s-length private Toronto-based esports organizer and management company – BEAT Gaming Corp.
YDX is a technology Company that develops products and services for immersive technologies like augmented and virtual reality (AR & VR), esports events and interactive exhibitions.
Under the terms of the deal, YDX is paying $640,000, which includes $240,000 in stock consideration, made possible by closing 4 million shares in the Company’s capital, along with a cash payment of $400,000.
This acquisition is an ideal fit for YDX and in an initial news release for investors on this transaction, CEO Daniel Japiassu expressed that the Company has ambitious plans for its esports initiatives and anticipates a broad boost to its business, now that the BEAT team is on board.
“There are few esports event producers as experienced as BEAT and we are confident that our network can be a key element to expand their business opportunities, both for online and live events like our Game On Festival. We are also looking forward to bringing BEAT’s event management experience to our other areas like exhibitions and experience centers. The world is becoming more and more gamified and esports is influencing all live activations.”
YDX’s Game On Festival is a fusion of culture and entertainment in the gaming community at large. It offers interactive exhibits, game arenas, esports tournaments, and high impact collective experiences, united in one large exhibition style event.
Over the past nine years, BEAT has gained more than 40 million audience views across the globe among its 30+ professional and semi-pro esports events. Some popular names among the crowd include “Dota 2”, “Overwatch” and “PUBG BEAT” Invitational.
An operation such as BEAT would bring a lot of added power to YDX’s Game On Festival, which is an interactive entertainment event designed for gamers, families and fans of all ages that celebrates the video game universe.
This is just the first in what is likely to be a cascading series of further acquisitions in the future. Given the Company’s two other key verticals, there is a lot of opportunity for both smaller companies to take advantage of. YDX’s other verticals are its Arkave VR Arena, an immersive VR experience that offers everything from state-of-the-art free room tech right down to the most nostalgic gaming systems, and YDreams Global, a developer of more than 1,300 interactive experiences for clients like Disney, NBA, Nike, Mercedes-Benz, Coca-Cola, the City of Rio and Fiat.
Investors should keep a close watch on YDX Innovation Corp. and its stock as more news develops.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.