“Ten years ago, when people started to migrate from traditional media to social media, that gave rise to Snapchat and YouTube and Twitter. Today, there’s a similar mass migration happening from traditional social media to the new social media, which is gaming,” said Enthusiast Gaming CEO Adrian Montgomery, as noted by the Toronto Star. As the shift happens, it’s benefiting companies such as Enthusiast Gaming Holdings Inc. (TSX:EGLX)(NASDAQ:EGLX), Roblox Corp. (NYSE:RBLX), Facebook Inc. (NASDAQ:FB), Snap Inc. (NYSE:SNAP), and Twitter Inc. (NYSE:TWTR).
In addition, according to WARC, “People play video games for all sorts of reasons. Some venture into gaming for the competitive nature while others are looking to escape into a virtual world to unwind. And now more than ever, people are looking for new ways to connect with friends and strangers alike. With socialization features now part of video game DNA, gaming is positioning itself as a new kind of social network.”
Enthusiast Gaming Holdings Inc. (TSX:EGLX)(NASDAQ:EGLX) is Developing a Social Network
Enthusiast Gaming Holdings Inc. just announced its plans to develop a subscription-based social network for gamers, codenamed Project GG. To facilitate the development of Project GG, Enthusiast Gaming has entered into a definitive agreement to acquire Tabwire LLC for US$11 million in cash and stock. The acquisition will provide Enthusiast with a technology and data platform which provides gamers the ability to directly view their game data in real-time.
“The announcement of a unifying pan-Enthusiast - social network with a premium subscription opportunity for gamers, is a defining moment for us as our core GenZ and Millennial audiences have been moving away from the more mature social networks and turning to gaming as an alternative,” commented Adrian Montgomery, CEO of Enthusiast Gaming. “Project GG addresses these trends and will allow gamers to register their unique gaming profiles, compare stats, develop meaningful connections, and share content and ideas.” He continued, “Tabwire marks an important milestone for Enthusiast Gaming to be able to bring Project GG to market later this year. It will provide us with essential data capabilities to deliver our customers a complete social offering with a more targeted, integrated and personalized experience for today’s gamer. This is a meaningful next step towards becoming a technology-powered, media, esports and entertainment company.”
Tabwire is a technology and data platform that enables gamers, by way of a registered user profile, to track their player and game stats. Tabwire has already built game play companion tools for Riot’s Valorant and Ubisoft’s Rainbow Six Siege with more than 13 million gamers interacting with the platform, collectively generating more than half a billion views in the last year. It has an aggressive roadmap to launch real-time stats for additional game titles in the coming months.
“We are in a unique position to successfully execute our mission to build a true platform for a game agnostic social network. Our unique vantage point and distribution platform that reaches over 300 million gamers monthly gives us unparalleled exposure to the full breadth of the gaming industry, from publishers to gaming media to influencers and esports teams,” commented Menashe Kestenbaum, Founder and President of Enthusiast Gaming.
The acquisition is subject to customary closing conditions, including regulatory approvals. Closing is expected to occur by the end of the second quarter of 2021.
Other related developments from around the markets include:
Roblox Corp., a global platform bringing millions of people together through shared experiences, released its first quarter 2021 financial results and separately posted a letter to shareholders and supplemental materials on the Roblox investor relations website. “Our first quarter 2021 results enabled us to continue investing aggressively in the key areas that we believe will drive long term growth and value, specifically hiring talented engineering and product professionals and growing the earnings for our developer community,” said Michael Guthrie, Chief Financial Officer of Roblox. “We believe we must continue to innovate and so remain focused on building great technology to make progress on our key growth vectors, primarily international expansion and expanding the age demographic of our users.”
Facebook Inc. reported financial results for the quarter ended March 31, 2021. "We had a strong quarter as we helped people stay connected and businesses grow," said Mark Zuckerberg, Facebook founder and CEO. "We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce, and the creator economy."
Snap Inc. announced financial results for the quarter ended March 31, 2021. “We began 2021 by achieving our highest year-over-year revenue and daily active user growth rates in over three years during the quarter, and delivering positive Free Cash Flow for the first time in Snap’s history as a public company,” said Evan Spiegel, CEO. “The strength of our business underscores our relentless focus on product innovation and is a testament to our team’s ability to execute well together over the long term.”
Twitter Inc. announced that Ned Segal, Chief Financial Officer, will participate in a question-and-answer session at the J.P. Morgan Global Technology, Media & Communications Conference on May 25, 2021 at 8:45 a.m. PT (11:45 a.m. ET). A live webcast and replay of the presentation will be available on Twitter’s Investor Relations website.
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