Esports Mogul Share Price Leaps 35% in 10 Minutes — Here’s Why
Esports media and software business Esports Mogul Ltd [ASX:ESH] has had a nice bump in share price today, upon partnering with a NASDAQ-listed streaming company.
Although, shares in ESH only traded for 10 minutes this morning before the company entered a trading halt.
It’s been a bit of a bumpy 12 months for ESH, though the past few months has seen some solid growth.
The share price in early August jumped strongly thanks to the appointment of former Electronic Arts, Disney, and Midway executive Michael Rubinelli as CEO.
Before shares entered a trading halt today, ESH was up 35.71% to trade at 1.9 cents per share.
Mogul and Super League Gaming team up
This morning’s announcement relates to a new partnership between ESH and Super League Gaming Inc [NASDAQ: SLGG].
SLGG is a global player in competitive video gaming and esports entertainment which develops sophisticated live broadcast production capabilities.
If you know nothing about the industry, you might be wondering how this will impact ESH’s business.
Let me break it down for you.
ESH owns a tournament and matchmaking platform and generates revenue by partnering with brands and creating sponsorship opportunities for players.
The partnership means to generate revenue by providing end-to-end solutions for brands and rights holders through esports tournament activations and streaming.
Think of it like the footy.
ESH is the AFL or NRL, and SLGG is Channel 7 or Channel 9 — admittedly, that’s not completely accurate but it gives you a pretty good understanding.
ESH CEO Michael Rubinelli commented:
‘Esports is a fast-growing gateway between brands and everyday gamers. We want to scale a best-in-class and industry leading proposition for brands and rights holders and Super League Gaming brings highly complementary technology to our ambitions. This partnership was the perfect fit for us and we can’t wait to get started.’
Where to from here for the ESH share price?
ESH requested a trading halt today regarding clarification of this morning’s announcement.
So, we could see trade resume tomorrow.
The announcement does not make clear exactly how the partnership will be structured, which may be the point ESH means to clarify.
Regardless of how it will be structured, there is some nice potential in this for ESH.
For the six months to July 2020, SLGG’s produced content has generated in excess of one billion viewer impressions.
The exciting part about SLGG’s technology is its automated AI-powered camera character.
A feature that allows for greater viewer immersion.
And, from ESH’s end, hopefully generates greater sponsor interest in its tournaments.
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