Enthusiast Gaming (EGLX.T) announced today that it has closed its previously announced acquisition of Tabwire, which owns TabStats, for USD$11 million in cash and stock.
“As a gamer myself, I can genuinely say that the technology behind Tabwire is a game changer for the industry as it provides the foundation for a new form of community allowing gamers to connect, interact and compete in a trusting environment…,” commented Menashe Kestenbaum, founder and president of Enthusiast Gaming.
On May 12, 2021, Enthusiast Gaming announced that it had entered into a definitive agreement to acquire Tabwire for integration into the Company’s upcoming Project GG. Tabwire is a proprietary technology and data platform enabling gamers to create user profiles to track and view their game data in real time. Tabwire’s gameplay companion tools, like stat tracking, really shine in popular competitive games like Valorant, Rainbow Six Siege, and Call of Duty. Having amassed more than 13 million gamers, collectively generating more than half a billion views in the past year, Tabwire has now become a significant asset for Enthusiast Gaming.
Enthusiast Gaming’s Project GG is intended to create a cross-platform, gaming-centric social network, uniting gaming and esports fans on one singular platform. This platform will enable gamers to connect and share content through unique gaming profiles, whether its on desktop, mobile, or even in a game. With this in mind, Project GG will be advertised as a “freemium” service. As speculated in my previous articles, I had a creeping suspicion that Enthusiast Gaming would offer Project GG for free while offering an optional subscription-based variant. The Company’s latest press release confirms that Project GG’s will be a freemium service, indicating that some features, potentially even stat tracking, may be locked behind a subscription fee.
This acquisition represents the next big step in our mission to transform this industry even further and successfully deliver a game-agnostic social network for gamers globally. I would also like to take this opportunity to welcome Tabwire’s founder and creator, Nader Halim, to the Enthusiast Gaming family,” continued Mr. Kestenbaum.
Enthusiast Gaming’s acquisition of Tabwire has been in the works for quite some time. As one of the most popular video game stat tracking services, Tabwire will undoubtedly serve as a boon for the Company. However, I believe the success of the Company’s Project GG will rely heavily on how Enthusiast Gaming plans to use Tabwire within a freemium business model.
Upon closing of the acquisition, the Company made a cash payment of $5 million and issued 790,094 common shares at an agreed value of $9.51 per share, for total share consideration of $6 million.
Enthusiast Gaming’s share price opened at $7.13, up from a previous close of $7.08. The Company’s shares are up 1.69% and are currently trading at $7.20 as of 10:29AM ET. This indicates that there has been noticeable change following the news.
