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04 November 2020
GameSquare Esports
Overview
GameSquare Esports (CSE:GSQ) is the parent company of Code Red Esports, a leading esports talent and marketing agency that increased turnover from $2 million in 2018 to $3 million in 2019. The company has also been nominated by Esports Awards as the Top Supporting Esports Agency of the Year.
In 2020 alone, esports has generated more than 495 million viewers worldwide with an expected audience of 600 million by 2023. Many esports tournaments are now offering millions of dollars gathered through prize pools—the International Dota 2 Championships offered US$18.4 million in 2016, US$34.3 million in 2019 to its winners and this year the prize pool has already exceeded $40 million and continues to grow.
The global esports market is valued at just over US$950 million. By 2023, global esports market revenue is expected to reach US$1.6 billion. High-profile brands such as Samsung, PUMA, Nike (NYSE:NKE) and Coca-Cola (NYSE:KO) have all provided major esports sponsorship opportunities, both online and offline. For example, Coca-Cola is the official non-alcoholic beverage sponsor of the Overwatch League (OWL) while Nike recently struck a four-year deal with the League of Legends Pro League (LPL). League of Legends is the most-watched esport in the world.
Esports agencies such as Code Red introduce much-needed infrastructure to an industry undergoing rapid growth. Agencies represent influencers, on-screen talent and players, securing sponsorships, navigating media rights, improving stability and maximizing revenue. While mainstream media channels have only recently caught wind of the fast-growing industry, GameSquare’s Code Red has been established in esports since 2003. The agency represents more than 75 influencers, players and on-screen talent.
GameSquare’s management team offers decades of expertise in finance and corporate strategy. The company’s CEO, Kevin Wright, commented, “I see tremendous potential within the agency business by expanding relationships with top talent and with leading global brands trying to reach an important group of consumers that are loyal to authentic gaming and non-gaming brands. Furthermore, there is a tremendous opportunity to acquire companies serving the esports market that we believe can benefit greatly from access to capital as part of the GameSquare group of companies.”
The company has contracts with leading global gaming and non-gaming brands and GameSquare management has indicated that it intends to acquire leading esports assets to expand their highly scalable platform. As the esports industry continues to grow with what seems like unstoppable cultural momentum, companies like GameSquare and Code Red are well-positioned to capitalize on the influx of new players, viewers and branding opportunities.
Gamesquare also expanded its relationship with Dexerto as a strategic partner for the collegiate Esports series. The company also announced that the Gaming Community Network (“GCN”) has agreed to an expanded commercial agreement with Dexerto. Through the CGN, Gamesquare has signed a sales partnership with Even Matchup Gaming (“EMG”). EMG owns and operates major esports events, including Get On My Level, the largest fighting game tournament in Canada and Let’s Make Moves, the largest Super Smash Bros. event in the New York Area.
In May 2021, the company added legendary skateboarder, entrepreneur, and philanthropist Tony Hawk as a strategic advisor. Mr. Hawk continues to push the limits of his sport, and his iconic video game franchise is a longtime global success.
GameSquare’s Company Highlights
- The global esports market is worth more than US$950 million and is expected to grow to US$1.6 billion by 2023.
- GameSquare is the parent company of Code Red Esports, a leading esports talent and marketing agency that represents more than 75 influencers, players and broadcasters.
- Code Red increased turnover from $2 million in 2018 to $3 million in 2019.
- Esports agencies such as Code Red introduce infrastructure to the fast-growing esports industry by representing influencers and players, securing sponsorships, navigating media rights, and maximizing stability.
- Code Red has contracts with leading global gaming and non-gaming brands and GameSquare management has indicated that it intends to acquire leading esports assets.
- GameSquare Esports reports +97 percent year-over-year revenue growth in Q1 2021 as Esports engagement sets global records.
- TimTheTatman, one of the most popular esports personalities with more than 18 million social followers, has joined Complexity, a part of the GameSquare Esports group of companies.
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