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TORONTO, Nov. 14, 2018 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast” or the “Company”) (TSXV: EGLX), a digital media company building the largest community of authentic gamers, is excited to announce that it has acquired the assets of Operation Sports LLC (“Operation Sports”), one of the largest online sports video gaming news and community forums, through the Company’s wholly-owned subsidiary, Enthusiast Gaming Inc.
Since its inception in 1998, Operation Sports (www.operationsports.com) has grown from a small community driven news site into an industry leading destination for sports video gaming enthusiasts to connect online. Founded and operated by experienced sports video game veterans, Operation Sports is the leading sports video gaming community online. The site reaches approximately 1 million unique visitors per month and has 50 million pages viewed year-to-date according to Google Analytics. In addition, the site has a thriving forum community of over 900,000 registered members who have written 14 million posts to date.
The acquisition of Operation Sports significantly enhances Enthusiast’s reach and coverage within the sports video gaming industry and strategically positions Enthusiast to capitalize on the convergence of traditional sports with Esports. Operation Sports is the go-to place online for sports video gaming enthusiasts to read, write and engage in the latest industry news and trends. The community covers all major sports video games including: Madden NFL 19, NBA 2K19, NBA Live 19, FIFA 19, PES 2019, NHL 19, F1 2018, MLB The Show 18, The Golf Club 2019, and UFC 3.
As consideration for the acquired assets, Enthusiast Gaming Inc. will pay, at closing, an initial amount of US$250,000 (C$335,000) and 117,924 common shares in the capital of the Company. In addition, Operation Sports will receive earn out payments for two years following the completion of the acquisition, which is expected to raise the total purchase price up to C$1,000,000 based on performance milestones.
Menashe Kestenbaum, CEO of Enthusiast Gaming, commented, “We acquired Operation Sports to strategically grow our sports video game content and community, particularly in an era when traditional sports teams and leagues are investing more in Esports franchises and tournaments. It’s exciting to see professional athletes and traditional sports team owners getting involved in new Esports leagues and teams. We see significant growth potential within the emerging Esports industry and are thrilled to welcome the Operations Sports team of talented writers and content creators to help build out our growing Esports platform.”
The acquisition of Operation Sports aligns with Enthusiast’s acquisition strategy to acquire profitable video game content focused websites, leveraging the strength of its unique monetization platform. The purchase follows other strategic acquisitions made by Enthusiast in the past year, including Destructoid, The Escapist, Gamnesia, Daily Esports, PC Invasion, Diabloii.net and Gameumentary.
Founded in 2014, Enthusiast is the fastest-growing online community of video gamers. Through the Company’s unique acquisition strategy, it has a platform of over 70 owned and affiliated websites and currently reaches over 75 million monthly visitors with its unique and curated content. Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX (www.eglx.ca). Over 30,000 people attended EGLX in October 2018. For more information on the Company, visit www.enthusiastgaming.com.
Head, Investor Relations & Marketing
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations and future actions of the Company. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Enthusiast to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to Enthusiast, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of the Company should be considered highly speculative.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The securities of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.