Engine Media (GAME)(GAME:CA)
Out of Eden
Engine Media Holdings Inc is engaged in esports data provision, esports tournament hosting, and esports racing. Its brand profile includes Eden Games, Allin sports, and UMG, and others. The company’s operating segments include E-Sports; Media and Advertising and Corporate and Other. It generates maximum revenue from the Media and Advertising segment. The Media and Advertising segment includes platform and advertising services provided to other broadcasters, primarily local tv and radio broadcasters.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
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Sale of Eden Games. The Company announced the sale of its subsidiary, Eden Games, to Animoca Brands for $16 million or 1.8 times projected fiscal 2022 revenue of $8.78 million. Engine received $15.3 million for its 96% stake. We view the transaction favorably, given that we viewed Eden as a non-strategic asset.
A more focused approach. The sale of Eden should allow management to focus its attention on its fast growing B2B businesses, which include gaming data and analytics, programmatic advertising, and influencer marketing …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.