eSports
Metaverse Pioneer Infinite Reality, Inc. to Acquire Entertainment Conglomerate ReKTGlobal In Landmark Half Billion Dollar Transaction
Infinite Realty, Inc. (iR), the Metaverse innovation and entertainment company born out of the powerful merger of social ecommerce platform Display Social, leading entertainment production company Thunder Studios, and innovative Metaverse builder Infinite Metaverse, announced that they have entered into a definitive merger agreement to acquire esports and entertainment conglomerate ReKTGlobal, Inc., in a $470 million all-stock deal, based on an equity valuation for iR of $2 billion, for a combined post-close valuation of $2.47 billion. Completion of the transaction is subject to customary closing conditions, including ReKTGlobal shareholder approval, as well as regulatory and other approvals.
Founded in 2017 by industry veterans Dave Bialek and Amish Shah, ReKTGlobal has focused on helping endemic and non-endemic brands authentically activate within the gaming and esports industries. With its proven and experienced leadership team, ReKTGlobal is uniquely positioned to help brands engage the esports and creator markets through services including content creation, paid media, marketing, influencer activation, fan relationship building and monetization, and more. This acquisition aims to consolidate ReKT’s entertainment and esports business into Infinite Reality’s already impressive offering of creative tools covering social, gaming, virtual and remote production, NFT minting, content, and Metaverse creation.
As part of the deal, Infinite Reality will integrate ReKT’s four key business divisions, which include esports franchises, marketing and partnership services, talent management, and technology products. Infinite Reality’s comprehensive vision is bolstered by ReKt’s previous acquisitions of content creation and marketing company Greenlit Content; renowned digital media agency Fearless Media; fan engagement and monetization platform FullCube, and digital talent management company TalentX Entertainment. Additionally, ReKTGlobal stands at the forefront of competitive global esports, thanks to its ownership of League of Legends LEC champions Team Rogue and Call of Duty League’s London Royal Ravens. ReKTGlobal currently has offices in New York, Los Angeles, Las Vegas, Charlotte, London, and Berlin. Investors in ReKTGlobal include the band Imagine Dragons, Nick Gross, son of billionaire investor Bill Gross, DJ Steve Aoki, and Summit Partners, to name a few.
“This acquisition is another step in our journey towards becoming the leading Metaverse Entertainment company in the world,” said Infinite Reality CEO John Acunto. “The synergies across our combined business units from content creation to Web3 entertainment to APIs and more are awe inspiring. We look forward to working with ReKTGlobal’s senior leadership to integrate our valuable combined assets and accelerate Infinite Reality’s growth.”
“We are extremely excited to announce this acquisition to all of our investors, employees, and clients, as well as all Rogue and Royal Raven fans around the world,” said Amish Shah, ReKTGlobal Founder and Chairman. “Our journey does not end today. We are beginning the next chapter in our evolution into the Metaverse. The explosive combination of our shared collective assets together creates a dominant, unstoppable force in the marketplace.”
By integrating the two companies’ robust assets, Infinite Reality further establishes its place at the forefront of creator empowerment and Metaverse opportunities.
“We believe that the future of business, entertainment, socializing, and learning will be conducted in digital environments and that iR is the company that will bring it all to life,” said ReKTGlobal co-founder and CEO Dave Bialek. “We will employ the incredible 150,000 square foot production facilities at Thunder Studios to create the digital twins of our gaming and creator brands, as well as the many businesses, municipalities, and brands who also wish to take the transformative step. With many thanks to John Acunto and Rodric David and the many brilliant and creative minds at iR who recognized the synergies between our companies and quickly and innovatively snapped the pieces together.”
Infinite Reality previously announced it entered into a definitive merger agreement with NYSE-listed Universal Security Instruments, Inc. (NYSE: UUU) and secured a Standby Equity Purchase Agreement with Yorkville Advisors Global, LP for up to $200 million upon completion of the merger with Universal Security Instruments. Completion of the announced merger with Universal Security Instruments remains subject to approval by shareholders of both Infinite Reality and Universal, as well as clearance by the Securities and Exchange Commission and NYSE stock exchange listing.
Cowen is serving as exclusive financial advisor to ReKTGlobal and O’Melveny is serving as legal counsel to ReKTGlobal.
eSports
Wamba Technologies signs Borderlands Developer Aaron Thibault to Esports Project
Wamba Technologies, a think tank consisting of leaders in the online gaming industry, is excited to announce the appointment of Aaron Thibault as oversight for its upcoming esports venture, Gamers Oasis. This key addition comes as they move to launch their Gamers Oasis platform which allows gamers to compete for real money directly from their mobile devices.
Thibault began his gaming industry career in 1998, initially working as a sound designer and cinematic director at EA/Origin Systems. Today, he brings over 30 years of experience in game development and education. Thibault spent 16 years at Gearbox Entertainment as Vice President. There, he led major projects, including developing the billion dollar Borderlands franchise. Borderlands 3 was nominated for Best Game Design and Best Art Direction. Currently, Thibault serves as the director of games and esports at Texas A&M University. His industry knowledge will play a significant role in driving the development of Gamers Oasis, which aims to revolutionize online esports competitions.
Meanwhile, a platform like “Gamers Oasis” is only possible due to a patent that gives Wamba Technologies and Gamers Oasis the exclusive capability to offer “real money” capabilities into skill-based video games in the United States where players can actually compete for real money online (Patent 10,424,160). Their patent allows them (and ONLY them) to offer a software feature which will allow gamers to pay an entry fee into tournaments online, compete against each other, and actually win money back (where such capability is integrated into the game in some fashion). This will ultimately give developers previously untapped revenue streams and players the ability to win large amounts of real money while utilizing their skills from the comfort of their very own homes.
“At Wamba Technologies, we are committed to making esports accessible to everyone,” said Denham. “With Aaron’s oversight and experience, we will be able to move into the next phase of development and make Gamers Oasis a reality for dedicated esports players everywhere”
“What Gary and I are going to do with Wamba Technologies and Gamers Oasis has never been done before in esports,” said Thibault. “There is so much incredible potential in this patent, and we can’t wait to start putting it to use and creating a product that is going to completely revolutionize the esports industry.”
Online, real money competition (online esports) is still in its infancy, but Wamba Technologies is currently engaging with gamers, game designers, coders, programmers, esports influencers and financial consultants to aid in the development of Gamers Oasis.
In the United States alone, 215 million people play mobile video games and globally, more than 700 million people are involved with esports. Among those 700 million people worldwide, only a very small percentage are competing online when real money is involved, while the rest of the players are competing in real life (IRL) at physical locations. Wamba anticipates that when offered and monetized properly, a mere 10% of the global market share could generate $13B-$15B in annual revenue from tournament buy-ins and ad revenues alone.
Aaron is not the first major player recently signed on board by Wamba Technologies. Wamba has also previously signed Andy Ashcraft (God of War 2, God of War 3, Disney’s Cars 2, and more), Brian Upton (Lead game designer for Tom Clancy: Rainbow 6, Tom Clancy: Ghost Recon), Marty Denham (genius mind behind the Pentium wafers for Intel), Joe Bagdon (CSO, formerly Military Intelligence Cyber Security in Afghanistan), Jared Goetz (former Lionsgate VP), and a number of other “rock star” individuals behind, or working with, multi-billion dollar products/companies.
Canada
Cutting-edge esports betting solutions empower BET99’s expansion into the booming vertical
PandaScore, the premier provider of esports betting odds, data, and innovative products, has announced an exciting new collaboration with BET99, one of Ontario’s top-ranking sportsbook and casino operators. This marks another major milestone for PandaScore as it continues to build its network of high-profile operators.
The deal gives BET99 access to PandaScore’s industry-leading Odds feed, which delivers comprehensive coverage of the world’s most popular esports titles, including Counter-Strike 2 (CS2), Dota 2, and League of Legends (LoL). Powered by advanced algorithms and supported by a team of specialized traders, PandaScore’s feed enables operators like BET99 to offer competitive odds while hitting a standard-setting margin of 6%.
In addition to PandaScore’s Odds feed, BET99 will integrate cutting-edge features such as BetBuilder and MicroBetting markets. These tools empower players to customize their wagers and enjoy dynamic, fast-paced betting experiences, aligning perfectly with the demands of today’s esports audiences.
The move into esports betting comes at a pivotal moment for the sector, which continues to see exponential growth. PandaScore recently surpassed €1 billion in esports bets processed through its platform, underscoring its expertise and leadership in this space.
Oliver Niner, Head of B2B, PandaScore, said: “Esports betting is rapidly becoming a cornerstone of the betting industry, and we’re thrilled to support BET99 as they take this exciting step. With our powerful Odds feed and innovative products like BetBuilder, BET99 is uniquely positioned to deliver a premium esports betting experience to players across Ontario.
“Our collaboration with BET99 is representative of the incredible momentum PandaScore has built in expanding our operator network. We’re excited to collaborate with BET99 and support their ambitious plans to become a leader in esports betting.”
Andre Bewerungen, Head of Sportsbook, BET99, added: “At BET99, our mission has always been to deliver a world-class player experience through personalization and innovation. With esports rapidly emerging as a key vertical, we see an incredible opportunity to engage the next generation of bettors who are passionate about this dynamic space.
By collaborating with PandaScore, we can provide tailored, engaging, and cutting-edge betting options that resonate with esports fans. Their comprehensive odds feed and advanced betting tools allow us to create a seamless, interactive experience that enhances player engagement and builds lasting connections with this growing audience. We’re excited to collaborate with PandaScore and take esports betting to the next level in Ontario.”
eSports
Influencers, Content and eSports: Unleashing the Power of Dynamic Strategies in the eSports Ecosystem
The sports betting industry is undergoing significant growth worldwide with restrictions loosening and new markets emerging. New opportunities create fierce competition among sportsbooks, and this has led to them devising increasingly expensive and aggressive advertising campaigns.
Public figures and influencers have become a popular go-to for sportsbooks promotions, such as Michael Jordan partnering with DraftKings or Jamie Foxx with BetMGM. Big names are costly, and sportsbooks haven’t realised the ad spend used on these campaigns is going to waste. Without the right precautions in place, up to 22% of ad spend is lost to fraud according to Juniper Research.
The big budgets behind high-profile brand campaigns need to translate into real user engagement. To achieve this, sportsbooks must ensure their digital channels are optimised to capture the surge in interest these campaigns generate. Without proper management, this potential can be lost to inefficiencies like invalid traffic, diluting the impact of their investments.
Ad Budgets Going to Waste
In today’s competitive landscape, sportsbooks need to make every click count. In 2023 alone, The American Gaming Association estimated that over $1.9 billion was spent on advertising campaigns in the US. With such a large amount of spend in play, it’s crucial that sportsbooks see as big a Return on Advertising Spend (ROAS) as possible.
Pay-Per-Click (PPC) campaigns are vital for sportsbook growth but can be disrupted by invalid traffic (IVT). IVT includes both malicious activity, like fraudulent bots, and unintentional actions, such as users repeatedly clicking on ads without intent to convert. These interactions inflate impressions and skew campaign performance data, leading to higher customer acquisition costs (CACs) and inefficient allocation of ad spend. Effectively managing IVT ensures that ad budgets drive genuine engagement and measurable growth.
Investing into influencers and celebrities also forces sportsbooks to bid on brand keywords to prevent their competitors stealing potential users searching for them. Up to 29% of PPC budgets are spent on this bidding according to Wordstream. As competition for brand keywords increases, PPC budgets are depleted without generating any new net revenue.
As campaigns become more expensive than ever, sportsbooks can’t afford to let profits fall to ad fraud. Instead of cutting budgets, sportsbooks should focus on analysing their campaign strategy.
Problematic Navigational Traffic
Navigational traffic is also presenting a significant challenge to sportsbooks alongside ad fraud. Navigational traffic refers to existing customers clicking on branded keywords to log into their accounts. While this seems convenient and harmless enough, this behaviour drastically inflates CACs. Like ad fraud, this can skew the effectiveness of PPC campaigns. By utilising paid search results instead of organic links to navigate to the site, costs are driven up without contributing to new user acquisition.
In addition to the challenges posed by navigational traffic and ad fraud, the competitive landscape for first-time depositors intensifies the need for strategic bidding on Google search. Brands investing heavily in influencers or sponsorships of major sporting events to generate awareness and drive potential users to search for them. However, without securing top placements in paid search results, these prospective customers may be intercepted by competitors before reaching the organic search listings. This creates a critical juncture where the effectiveness of a brand campaign hinges on converting that intent-driven traffic into first-time depositors, ensuring marketing spend achieves its goal of meaningful user acquisition.
First-time depositors are a critical metric for sportsbooks, and this issue directly impacts the cost efficiency of acquiring them. High CACs make marketing budgets less effective, reducing overall ROI.
Shoring Up Your Defences
Before launching costly ad campaigns, sportsbooks should adopt a multi-faceted approach to address ad fraud. IVT typically goes unnoticed, so to prevent this sportsbooks should monitor and analyse their campaign traffic for any suspicious activity. It is possible to identify IVT by looking out for signs such as irregular spikes in traffic from unknown locations or high pageviews. Fraudulent traffic can then by highlighted and removed.
The advancement of technology has made ad fraud more difficult to identify, and legacy fraud tools fail to detect IVT. They don’t analyse traffic at the impression level or consider the context of the business advertising. Sportsbooks can leverage ad-verification platforms to compensate for this. This allows sportsbooks to analyse and report suspicious traffic in real-time. Fraud can then be blocked before it has a chance to harm budgets.
Sportsbooks can also deploy tactics to reduce the impact of navigational traffic on CACs. Methods include encouraging existing customers to use mobile apps or direct bookmarks to log into their accounts instead of paid search campaigns. This decreases their reliance on PPC campaigns for navigation and protects budgets.
Keeping Profits in Sportsbooks’ Hands
Influencer and celebrity campaigns have proven to be a popular and useful tool in reeling new users and profits. However, if sportsbooks don’t have the essential precautions in place, they risk losing these profits to advertising fraud.
To make the most of their advertising efforts, sportsbooks need to prioritise their traffic. Implementing sophisticated tools to analyse traffic and filter out fraud will allow sportsbooks to protect their interests and focus on driving future growth. This way, they can secure their position in an increasingly competitive landscape.
Written by: Chad Kinlay, Chief Marketing Officer, TrafficGuard
A driven, open-minded, creative senior marketer with a strong sense of dedication and commitment. With over 15 years of progressive international experience in marketing and communications management, Kinlay has a credible history of commercial success.
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