Torque Esports, Formerly Millennial Esports, to Acquire UMG Media


The transaction will combine Torque’s esports racing and analytics assets with UMG’s proprietary online event platform.

On Tuesday (October 22), Torque Esports (TSXV:GAME), formerly Millennial Esports, announced plans to acquire esports events company UMG Media (TSXV:ESPT).

With Aquilini GameCo’s acquisition of Enthusiast Gaming (TSXV:EGLX) making headlines in recent months, the Torque and UMG transaction presents a new stride in the explosive esports market.

The new company will combine Torque’s mobile racing and esports data divisions with UMG’s online and live esports operations.

Torque operates Stream Hatchet, an esports analytics firm that aggregates data such as hours watched, airtime, views and average concurrent viewers.

Along with Stream Hatchet, Torque runs three other divisions: Eden Games, based in France; Allinsports, originally formed by Formula 1 engineers; and Ideas+Cars, a content branding firm.

“We have been in contact with the UMG team for over a year now and have followed their journey with interest,” Darren Cox, president and CEO of Torque Esports, said in a press release.

“We have been impressed both with the size of their business and the level of engagement with their gaming audience. Those two metrics, audience size and engagement, will define the winners in the gaming industry over the next few years.”

With headquarters in Calgary, Alberta, UMG currently runs 296 active esports tournaments, awarding over C$650,000 in cash prizes. Over 17.8 million matches have been played across games such as Fortnite, Call of Duty and FIFA 20.

“UMG also has other, less obvious, benefits to us,” added Cox. “Combining their traffic with our Stream Hatchet data business will give us a lead in audience insight for brands, while UMG’s content delivery will also combine well with YouTube channel Let’s Go Racing, our recently announced acquisition.”

Prior to the transaction, UMG is aiming to complete a private placement, raising US$1.2 million through the issuance of 10 million shares for C$0.12 each.

The deadline for the two companies to execute a definitive arrangement agreement is October 28. In addition to receiving regulatory approvals, Torque must gain a 51 percent stake in Allinsports while approval must be granted from UMG shareholders.

Shares of Torque opened on Tuesday at C$2.41, declining almost 5 percent by Wednesday’s (October 23) close. UMG opened at C$0.12 on Tuesday, falling 17 percent to close at C$0.10 on Wednesday.

Don’t forget to follow us @INN_Technology for real-time news updates!

Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.

The Conversation (0)