Website Closers® presents a noteworthy player in the lucrative Gaming Tournament Industry. The sellers are offering the platform for sale at a price of $22 million, however, they are primarily seeking an additional $3 million in funding through an equity-based investment opportunity. The trademarked brand has redefined the gaming landscape through their cutting-edge, proprietary platform, which hosts a diverse range of games and tournaments. They empower avid gamers to participate in cash and prize-winning events through qualifiers and low-level buyins, which ensures accessibility for players of all ages and skill levels.
Their platform is known as the most compliant and easy-to-use tournament platforms in the industry and has been beta tested and outfitted with their own custom-built proprietary wallet to make them the best possible experience in their industry. These efforts have paid off, netting them a remarkable 99.9% retention rate, a growing number of users that rises every month, and strong income generated from both B2B and DTC sources. Their Average Contract Value for B2B is $15,000, while their Average Player Value for DTC is $9 per month.
The brand’s tournament platform offers three different revenue models, which consist of subscription, advertising, and service fees. Out of all the solutions they provide to their clients, their top three consist of, in order, advertising, tournament management, and player tournaments.
These categories can be broken down into a comprehensive suite of services, which consist of:
ESPORT TOURNAMENT PLATFORM SERVICES:
ESPORT TOURNAMENT EVENT OPERATIONS:
ESPORT SPONSORSHIP, MARKETING, AND ADVERTISING:
The brand’s marketing strategy consists of email sign-ups and promotions that make use of their over 12,000 subscribers. Their excellent customer service and partnerships with pro teams and pro streamers across popular livestreaming services like Twitch, TikTok, YouTube, and Kick provides excellent organic outreach. On Facebook and Instagram, they have an active social media presence where they consistently create new content, repost user content, reward tournament winners, and post polls to generate engagement and interest.
They also have an SEO plan in place and have a blog on the intel section of their website that helps improve their organic search rankings. These strategies have given them an average visitor rate of over 17,300 visitors to their platform every month.
The company isn’t resting on their laurels after the climbing they’ve done in the last few years. They are actively preparing for the next stage of growth, making this an ideal time to invest in the brand or purchase it outright. On top of that, there are many scale opportunities at their disposal that can be used to their advantage with clever planning and implementation.
The brand could, for instance, work with education/STEM programs and Scholastic to partner with school boards, delivering creative curriculum solutions that help make learning more fun for students. They could partner with gaming companies interested in hosting branded tournaments to enjoy the benefits of featuring these bigger name brands and use these partnerships to pursue global expansion to drastically broaden their targeted consumer base.
The company could establish pro, amateur, and country vs. country to create new entertaining options for their tournaments, begin offering coaching services for rookie gamers, release white label services to enhance their current grey label and implement their .gg site for subscriptions.
One of the best ways that the company could grow would be through increased advertising. A few ways that they could supplement their existing marketing campaign include running VR and AR events, and expansion to local in-person events for physical engagement.
This deal offers a unique value proposition for those interested in making the most of it. They have found a strong foothold in their industry through their excellent proprietary platform, and are already gearing up to enter the next phase of their growth. This is a great opportunity for investors and partners looking to participate in the exciting and dynamic world of gaming and eSports, and for a possible buyer interested in taking over to bring the company to the next level.
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