I MAKE ESPORTS PROFITABLE • Lifelong Gamer • Published Author • Professor • Featured Speaker • Indie Game Advocate • Blockchain Enthusiast • International Startup Advisor • Growth Hacker
Guild Gaming IPO'd at a valuation of $60M, but just sold all of its assets for $130K. This post-IPO acquisition values Guild's business at just 0.21% of its IPO valuation. UNPOPULAR OPINION: 90% of VC-backed esports orgs will end up just like Guild. In case you forgot, FaZe Clan IPO'd at a valuation of $725M, and peaked at $1B. However, GameSquare Holdings Inc. acquired it for $17M, 2% of its IPO valuation. NIP Group recently IPO'd at $9 per share, and peaked at $16 per share 3 days later. 3 months later, it's now sitting at $7.12 per share, a 56.85% drop from its peak. How will stories of IPO failures impact the exit strategies of venture-backed orgs?
Jason Atwood
2mo
It's important to remember esports is just a small piece of the overall gaming market. The real strength of gaming lies in its ability to reach a global audience across multiple platforms. From mobile games and consoles to PC gaming and emerging virtual reality experiences, the gaming ecosystem offers something for everyone. We're seeing consistent growth not only in game sales but also in in-game purchases, subscriptions, and digital content. In fact, the gaming industry as a whole is larger than the film and music industries combined. With a global audience of over 3 billion gamers, it's clear that gaming is a powerful and resilient sector, appealing to different demographics across age groups and geographies. From an investment perspective, gaming is still a great opportunity. Beyond esports, there’s significant growth in areas like game development, streaming platforms, cloud gaming, and tournament platforms. So, while esports might get a lot of the spotlight, it's just the tip of the iceberg and shows the overvaluing in one segment of gaming. The broader gaming market offers an even greater potential for innovation and long-term returns.
The team model is wrong IMHO. Set it up like a NASCAR “team” and you might find a formula for success. Let the stars shine and the others get in the way of the other team until they prove their own star potential. That or just have individuals battle it out World Series of Poker style.
I thought only crypto had rug pulls. This is crazy. I don't think even meme coins can compare with this. Oh wait, this is in traditional markets, with investor protection.. 🤔
Dennis Olympios
2mo
It's fascinating to see how the esports industry is evolving and the challenges it faces. The discrepancy between initial valuations and actual asset sales is striking. I'm curious about how these trends will shape future investment strategies and whether we'll see a shift in how these organizations are structured and funded.
What about EBET
Head of Brand Strategy @ Deloitte | Teamwork & Leadership | Professional Sports | Husband & Father
2moMarcus, do you think that there's a value play to be made here? Or is it just the overhyped bubble bursting? Is there equity in the teams? Or do audiences mostly follow the players around?