DraftKings Esports

Esports Entertainment Group May Acquire Argyll Entertainment

esports-entertainment-group-acquire-argyll-entertainment

Esports Entertainment Group (EEG) has recently publicly listed to the Nasdaq stock exchange with an $8.4 million IPO. The owner of esports betting platform VIE.gg is now in talks to buy Redzone and SportNation parent Argyll Entertainment.

EEG, licensed in Malta, premiered on the stock markets a few weeks ago in April. The company offered nearly 2 million share units at a price of $4.25 per unit. Its proprietary esports betting site VIE.gg is a licensed and regulated esports wagering platform that offers exchange style wagering and pool betting. Argyll Entertainment is a UK-licensed gambling operator owning the brands Redzone and SportNation. Argyll Entertainment employs around 30 staff based in London.

EGR Intel has learned that EEG and Argyll Entertainment have agreed a non-binding letter of intent signifying a 100% buyout by EEG for a purchase price of $1.25 million. Argyll Entertainment’s owners would also gain 541,667 shares in EEG worth $6 per share in the sale.

If the deal goes ahead, EEG will make Argyll Entertainment’s current chief financial officer Dan Marks the CFO for EEG. Marks is based in New York and has previously held senior roles for companies such as Barclays and HSBC. The deal may have been in discussion since ICE 2020.

It appears there are no plans for EEG to change the successful SportNation brand as this should offer the newly listed company a strong base for operation in the UK market. EGR notes this makes EEG an “attractive proposition for compliance-minded investors.” The publication also quotes a February note that EEG issued to potential investors as follows:

“We are likely to face significant competition in seeking appropriate acquisitions or strategic collaborators and these acquisitions and strategic collaborations can be complicated and time consuming to negotiate and document.”

As betting and esports betting operators grow in size and gain regulatory compliance and general acceptance by consumers and the entertainment industry, public stock listings and merger and acquisition activity will increase. The gambling market is maturing and entering new sectors, like esports betting.

For investors, particularly at a time when online entertainment will be prevalent, esports betting and sports betting and gaming operators are potentially an attractive opportunity. Many other industries are struggling with the coronavirus crisis. A number of sports and esports gambling stocks are emerging as propositions for savvy investors to consider placing their own bets on.

ESB Staff

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At EsportsBets.com we are a group of independent journalists with one big passion: Esports. We've been following the industry and have contributed to its growth since 2015.

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