Gfinity (AIM: GFIN), a world-leading esports and gaming solutions provider, today announces the acquisition of the trade and assets of Epicstream LLC (“Epicstream”), a leading online news community for fantasy and sci-fi movies, television, video games, collectable cards and comic books (the“Acquisition”).
Epicstream delivers daily news and content to its highly engaged fantasy and sci-fi community. Epicstream.com reaches 600,000 unique visitors each month, whilst its social media platforms, including its prominent Facebook group, has over 6 million likes across 30 pages. The majority of Epicstream’s users are based in the US and Canada, with a growing following in the UK, each of which are attractive high value advertising markets.
Epicstream generates revenue through programmatic ads, sponsored content, ecommerce and content creation. Gfinity will also monetise all Epicstream’s social channels. The Directors believe that user numbers and revenues can be grown through the deployment of a search engine optimisation strategy, technology toolkit and advertising performance optimisation techniques which have delivered strong results on Gfinity’s existing platforms over the past year.
The Acquisition means that Gfinity will assume ownership of the EpicStream.com website, its extensive social media network and their respective historic content. The continued growth of the platform will be supported by its founders joining the Gfinity team. Epicstream will sit within Gfinity Digital Media group (“GDM”), the Company’s digital media proposition.
The two founders of Epicstream will each be issued with 10.0 million new ordinary Gfinity shares in consideration for the Acquisition of which two-thirds will be locked-in for a period of one year from issue. The founders will also be entitled to an annual payment of 30% of revenues generated by EpicStream, subject to appropriate caps, in each of the first two years following the Acquisition, payable in annual instalments at the end of each year.
For the year ended 31 December 2019, Epicstream reported unaudited revenue of US$0.4million and net income of US$ 0.3million. As at 31 December 2019, Epicstream had unaudited assets valued at US$0.1million.
Update on GDM
The Acquisition is a further step forward in the Company’s strategic focus on owned content and comes as a time when GDM continues to make excellent progress. GDM remains on target to deliver revenue of approximately £2.0 million during the current financial year.
GDM delivered another record month in November, with 14 million monthly users across all sites (12 million in October) and revenues in the month exceeding £275,000 for the first time. In addition, GDM’s fourth website, www.racinggames.gg, went live during the month. This new website is focused on virtual motorsport, a key strength of the Company and reflects the board’s view of the growing interest and commercial opportunities in this area.
Update on Formal Sales Process (FSP)
The FSP is progressing as planned. The Company continues to engage in conversations and evaluate the best options to accelerate the growth of the business. It will provide further updates as and when appropriate.
John Clarke, CEO of Gfinity said: “We are delighted to welcome the Epicstream team into the Gfinity family. Francis and Brian have built a highly engaged community around all things fantasy and Sci-Fi. It is a perfect fit for GDM. Together we are going to turbo charge the growth of Epicstream and explore adding new sites into the franchise.
A key pillar of our Company strategy is to focus on products and services that we own. This is where GDM sits. The team has done an amazing job of growing our organic sites and partnering with larger media groups who want to connect with gamers. The team is also focused on identifying acquisition opportunities. Epicstream is the first of these and we could not be more excited about having the team on board.”
Francis Bayog, founder Epicstream said: “Over the past five years, Epicstream has carved a strong niche in the Fantasy & sci-fi space focused on delivering the best content we could share to our diverse audience who share our passion not just for the gaming culture, but also for fantasy & sci-fi movies, TV shows, and books. With Gfinity’s talented minds and position in the esports industry combined with Epicstream’s passionate community and wide range of subgenres we cover, I believe that we’re just barely scratching the surface of what is possible. Our synergy with Gfinity can accomplish what I envisioned Epicstream to be before I launched it – to create something truly EPIC.”
Brian McCormick, joint founder Epicstream, said: “Epicstream has always had the vision of becoming the number one global network for people who share a passion for geek culture. Gfinity shares that passion and we are thrilled to join the Gfinity team. The synergies are clear. With Gfinity’s talent, technical expertise, and resources, we will be able to greatly accelerate our plans to make this vision a reality.”