Esports holding company GameSquare Esports has announced that it has reached a definitive agreement with Engine Gaming & Media to combine the two companies.
Going forward, GameSquare Esports shareholders will own approximately 60% of the combined entity, with current Engine Gaming shareholders owning the rest of the company. The combined company will continue using GameSquare’s branding.
GameSquare Esports is the holding company behind esports agency Code Red Esports, as well as esports organisation Complexity and other assets. This includes esports merchandise company Mission Supply and a content studio called Fourth Frame Studios. Engine Gaming and Media owns streaming data platform Stream Hatchet, as well as a number of other digital companies.
This merger is as close to a standard corporate merger as it gets. The two companies will combine personnel and operations, with GameSquare’s CEO Justin Kenna leading the company as CEO. Lou Schwartz, CEO of Engine Gaming, will act as President of the newly merged company. The Board of the company will also remain the same; Dallas Cowboys owner Jerry Jones and Chairman of Goff Capital John Goff will also remain the largest investors in the company.
The combined company will have content creation, advertising, advisory, influencer marketing, merchandise and competitive esports segments, covering nearly all segments of the esports industry.
The two companies noted enhanced financial predictability, improved revenue, better client reach and increased audience size as the main benefits for the venture. The combined company will continue to be traded on Nasdaq and TSXV, with Engine Gaming shares continuing to trade on both exchanges under the symbol “GAME”.
Justin Kenna, CEO of GameSquare, commented: “The merger immediately expands our scale, which we expect will help us on an accelerated path to profitability in 2023, while creating an organization with a leading platform of end-to-end media, content, and technology assets.”
Lou Schwartz, former CEO of Engine Gaming and President of the newly-merged company added: “As a full-service, integrated company, we will be able to meet the needs of any brand sponsor through our SaaS revenue-based technology platforms. We believe the combined company will drive powerful growth and scale, while enabling an accelerated path to profitability.”
