Enthusiast Gaming has just acquired Omnia Media, an esports organization and broker to popular streamer names such as Shroud, Pokimane, and MrBeast, for $38 million (CDN $50 million), despite reported quarterly and total deficits.
Through its procurement, Enthusiast gaming gains access to an additional 90 million gamers on top of its estimated 260 million fan base. Consequently, it also makes the organization the biggest in all of North America, as per measurements of Comscore.
Although having a reach to a wider audience is a primary concern for the move, it also boils down to money. Omnia’s potential revenue alone is estimated at $53 million (CDN $70 million). Which, adding to Enthusiast, would tally to $83 million (CDN $110 million), twice than most valuable sports companies.
A Bargain Deal
While by no means a small amount for acquisition, Omnia’s attainment remains a bargain for Enthusiast. An organization, which, for the last 3 years, had taken 12 companies, including The Sims Resource, which it acquired for $20 million. Adding to its portfolio, one of the biggest gaming destinations among female audiences.
As per statistics, The Sims Resource gets an average of no less than 2 million visits per month. Its pull being a hub for downloading custom contents to Electronic Arts’ beloved franchise, The Sims.
Enthusiast Gaming’s strive for growth does not just solely involve gobbling up companies, however. In August 2020, the organization had a merger with Luminosity Gaming, operator to seven popular esports teams, essentially gaining 70 million followers.
In an interview with Forbes, Enthusiast CEO, Adrian Montgomery, claims that “Gaming is the new social network,” pointing to its vast audiences. Subsequently, compelling the company to capitalize on it “by building it.” Through its efforts, Enthusiast Gaming now has access to 500 gaming influencers that have reached a quarter of YouTube’s entire user base.
Confident in its position in the industry, Montgomery also states of its relevance with enterprises that require access to Millennials or Gen Z cohorts. Suggesting either the organization’s inevitability or that of the industry itself, that is, gaming—a notion that the company felt strongly about based on figures from Nielsen.
Despite losses that see the company bleeding $4.2 million quarterly or $63.7 million in total, Enthusiast seems optimistic about the business overall—seemingly drawing confidence from established data that saw an increase among the user base by 30 percent since the onset of the pandemic.
Corroborating to the idea itself is Enthusiast President, Menashe Kestenbaum, who expects the company to be “EBITDA positive almost immediately.”
Image used courtesy of Katusa Research/YouTube Screenshot