Enthusiast Gaming Acquires Significant Interest in Waveform Entertainment, a Leading Esports Operator and Tournament Producer
TORONTO, April 09, 2019 (GLOBE NEWSWIRE) — Enthusiast Gaming Holdings Inc. (EGLX.V) (EGHIF) (“Enthusiast” or the “Company”) is pleased to announce that it has, through a wholly-owned subsidiary, signed a definitive agreement to purchase 20% of the issued and outstanding shares (“Purchased Shares”) in Waveform Entertainment Inc. (“Waveform”) for an aggregate consideration of $1,680,000 (the “Subscription Price”). Waveform is a leading esports broadcast and production company specializing in the organization of premium esports tournaments world-wide. Enthusiast has also secured an irrevocable option, at its sole discretion, to acquire a 100% interest in Waveform. (the “Buy-Out Option”).
While Waveform was established in 2018, its team has been on the leading edge of esports event production and broadcast for several years, servicing some of the world’s most prestigious esports tournaments and events including Dreamhack, Cineplex WorldGaming, and Enthusiast owned, EGLX.
“Investing in Waveform will contribute greatly to the expansion of EGLX and our events business. Waveform’s infrastructure and expertise are key for the roll out of the Rising Star Series and upcoming esports tournaments at EGLX in the future,” commented Menashe Kestenbaum, CEO of Enthusiast. “We were very impressed by the organization of our esports tournaments at EGLX in October 2018 and we see significant growth potential as esports continue to soar.”
Waveform was responsible for the broadcast, production and execution of Canada’s largest esports tournament, WESG Canadian Finals at EGLX in October 2018. Enthusiast will continue to partner with Waveform as EGLX executes on its North American expansion plan and introduces the Rising Stars Series this summer. Waveform will provide the infrastructure, broadcast and event support to drive the expansion and continued growth of EGLX in 2020.
As esports continues to grow with $1.1bn in projected revenues in 2019,(1) large brands are entering the industry by sponsoring esports teams and championing their own activations. Waveform has partnered with major brands including Evil Geniuses, Virtus Pro, Ubisoft, AMD, Asus, Team Liquid and more. The investment into Waveform will help Enthusiast’s mission to reach gamers both online and offline. The Company will provide digital advertising and experiential marketing opportunities to major brands and publishers, increasing visibility and event attendance. The partnership enables Enthusiast’s event business to increase its client services portfolio to include event production, broadcast, streaming services and creative experiential brand ambassadorship programs. In turn, the partnership also allows Enthusiast’s platform to promote Waveform’s business and portfolio of large brands and help them drive new partnerships moving forward.