X1 Esports to acquire talent management firm Tyrus for $350K
by Adam Fitch
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X1 Esports & Entertainment has entered an agreement to acquire talent management firm Tyrus Talent Services.
The acquisition: X1 is looking to diversify its operations.
- The definitive agreement will see Tyrus join esports team brand Rix.GG under the X1 umbrella.
- The aim of the acquisition is to give the company further access to the Gen Z demographic and provide additional revenue streams, a move similar to TSM's launch of talent agency ICON in 2020.
- The acquisition will cost X1 up to $350K, including $150K in cash and 555,555 common shares. A $100K bonus may be paid if the management firm generates $1.75M in revenue in the first year.
- “The addition of the company to our portfolio will help to establish X1 as an advertising sales organization with access to some of the most sought-after content creators in the video games category," said X1 CEO Mark Elfenbein.
The company: X1's in growth mode.
- X1 owns Rix.GG, a British esports organization that was founded in July 2020 during the global health situation. It competes in Fortnite, Rocket League, VALORANT, and Wild Rift.
- The company completed its IPO on June 29 and is now listed on the Canadian Securities Exchange. At the time of publication, its stock price is down 20% since it hit the exchange.
- As with many esports organizations, this prospective acquisition makes it clear that X1 is dedicated to finding revenue streams outside of competition. Managing content creators through Tyrus has the potential to be the primary source of income for the company for years to come.
