Digital media entertainment company Riva Technology and Entertainment (RTE — formerly MSM Corporation International Limited) has announced a merger with multinational esports organisation Galaxy Racer (GXR).
The new company will be called ‘Celestial’ and is set to leverage the parties’ combined strengths and resources.
According to the release, the newly formed holding company will attempt to establish a dominant media and sports conglomerate, initially focused on the MENA region and Indian sub-continent.
Going forward, RTE will acquire the remaining securities of GXR, consolidating expertise and resources to ‘unlock untapped synergies’; boost sales; and enhance audience engagement. Specifically, the focus will be on the growing young consumer market in the MENA region and Indian sub-continent. The completion of the transaction is subject to a binding agreement and to the satisfaction ‘of the conditions precedent included in such agreement’.
The newly expanded MSM/RTE group of companies aims to fuel growth and expansion through a fundraising round. Additionally, MSM is considering a potential listing on a recognised securities exchange.
RTE currently owns 12% of GXR. After the transaction is complete, GXR will comprise 75% of the combined MSM/RTE group’s value. To acquire the remaining 78% of GXR, MSM will issue three additional shares for every GXR share. Subject to satisfactory due diligence, MSM expects to complete the transaction by May 31st, 2023.
Paul Roy, Founder and CEO of GXR and Founder, Managing Director and CEO of MSM/RTE, commented on the merger: “As Celestial takes shape, both companies are primed to leverage their collective strengths, capitalise on emerging opportunities, and shape the future of the media and sports industry. The rebranded holding company shall set its sights on spearheading innovation, engaging audiences, and leaving an indelible mark on the rapidly evolving landscape.”
Founded in 2019 by Roy, GXR has become a global cross-media company and has been actively involved in women’s esports, including organising a $100,000 (⁓£80,400) Apex Legends tournament in collaboration with EA.
