Enthusiast Gaming sells media assets for $5M to GAMURS
Update — 29/09/22, 20:25 GMT: GAMURS Group CEO Riad Chikhani has confirmed the acquisition of the properties from Enthusiast Gaming.
The acquisition: It'll provide significant financial relief for Enthusiast Gaming.
- The collective price for the acquisitions is $5M (CAD $6.8M), according to Enthusiast.
- As reported by Jacob Wolf, the acquisition is by GAMURS Group and includes Destructoid, Escapist Magazine, Operation Sports, PC Invasion, Siliconera, and Upcomer.
- According to an announcement, the sale represents a multiple of approximately 4.5x the associated revenue of the publications and will enable the Enthusiast to focus its resources on its "core business capabilities."
The rationale: Things have gotten even tougher in the media space in recent months.
- The media landscape is notoriously difficult to navigate with financial success in mind. Enthusiast laid off many of Upcomer's staff in a pivot to video back in March 2022, for example.
- The sale not only allows the Canadian company to bolster its balance sheet significantly, it reduces its ongoing operational costs. It posted a loss of $21.6M in the first half of 2022.
- CEO Adrian Montgomery believes that the sale gives Enthusiast an "ample runway to get to profitability," which he expects to reach in the "near-term."
- GAMURS, on the other hand, has been doubling down on media in recent times through a slew of acquisitions. It owns and operates Dot Esports, We Got This Covered, The Mary Sue, Prima Games, Tough Tap Play, Pro Game Guides, among other publications.