Video game portfolio company X1 Esports & Entertainment announced that it had agreed to acquire Tyrus Talent Services, a digital talent management group for content creators. The acquisition aims to make X1’s products more appealing to the Gen Z demographic and increase overall profits.
After the conclusion of the $350,000 deal, X1 will own the entirety of the issued and outstanding membership interest of Tyrus. The agreed purchase price is $150,000 in cash and 555,555 newly issued X1 shares worth $0.45 each. A bonus payment of $100,000 in cash or shares was also negotiated, provided Tyrus manages $1.75 million in revenue during its first fiscal year.
X1 Diversifies Its Assets
The Vancouver-based X1 Esports operates primarily through its esports franchise RixGG. It organizes video game tournaments, deals with merchandising, and strives to popularize esports. The latest acquisition will help the company diversify its assets as it enters the realm of digital content creators.
Tyrus specializes in gaming and lifestyle content and supports its creators with paid partnerships, access to live shows, free game codes, and other opportunities. The company also offers video editing, platform management, and social media management. It has a presence on YouTube, TikTok, and Twitch.
X1 Esports is also on its way to acquiring Shift RLE, an online news outlet primarily focused on the game “Rocket League.” With these two purchases, X1 will be involved in competitive gaming, content creation, and a media brand. The company will then have a diverse and synergistic portfolio better able to adapt to industry challenges.
The Deal Will Benefit Both Companies
Mark Elfenbein, CEO of X1, stated that the acquisition would grant X1 access to high-profile video game content creators and cement the company’s place in the advertising sales market. He expressed optimism about the purchase and lauded Tyrus’s potential for success.
The Tyrus platform expertly bridges the gap between international brands and the gaming ecosystem.
Mark Elfenbein, CEO of X1
CEO of Tyrus Amanda Solomon also drew attention to the increased opportunities after the new partnership. She noted the Tyrus team’s excitement to join X1 and use the synergies between the two companies to achieve future success.
I’m supremely confident that joining X1 will take us to the next level and help us become an increasingly dominant player in this space.
Amanda Solomon, CEO of Tyrus
Solomon drew attention to Tyrus’s position as an industry disrupter which focused on connecting global brands with engaging Gen Z viewers via its roster of content creators.
X1’s diversification follows a trend in esports companies. Although many have tried treating esports as a stand-alone business, experts now mostly agree that it is not a viable long-term strategy. They believe the best use for the industry is customer acquisition for other sectors and a diverse portfolio is a defining factor for success.