ReKTGlobal to be acquired in $470M all-stock deal
ReKTGlobal, an esports holding company, is set to be acquired by "metaverse innovation and entertainment company" Infinite Reality in a deal worth $470M.
The basics: ReKTGlobal has been bolstering its services through acquisitions and investments for years.
- ReKTGlobal owns esports team Rogue, Call of Duty League franchise London Royal Ravens, media agency FullCube, content creation company Greenlit Content, and talent management agency TalentX.
- The company has entered a definitive merger agreement with Infinite Reality, which is a merger between e-commerce platform Display Social, production company Thunder Studios, and "metaverse builder" Infinite Metaverse.
- The transaction is worth $470M and is an all-stock deal that's based on an equity valuation for Infinite Reality of $2 billion. Should the deal close, the combined valuation of the company would total almost $2.5B.
The acquisition: Infinite Reality must regard esports as an important part of its future.
- A release states that Infinite Reality has a lot of use for ReKTGlobal's companies outside of esports, namely its agencies and marketing business units.
- An all-stock deal means that investors in ReKTGlobal will receive shares in Infinite Reality to compensate them for their ownership. Shareholders in the esports holding company include members of band Imagine Dragons, DJ Steve Aoki, basketball player Rudy Gobert, and tennis player Taylor Fritz.
- Both parties believe that them coming together solidifies Infinite Reality's strong position in content creation and the metaverse. ReKTGlobal CEO Dave Bialek stated: "We believe that the future of business, entertainment, socializing, and learning will be conducted in digital environments and that iR is the company that will bring it all to life."