- Media and technology company GameSquare (NDAQ:GAME) and its Frankly Media LLC subsidiary have sold some non-core assets of their business
- Immergo, a provider of streaming technology has acquired Frankly’s content management software
- Frankly’s CMS and PR distribution assets have generated approximately $1.6 million in combined annual revenue, and GameSquare sold these non-core assets for a total consideration of $2.2 million that will be paid over a three-year period
- GameSquare stock last traded at US$1.35 per share
Media and technology company GameSquare (NDAQ:GAME) and its Frankly Media LLC subsidiary have sold some non-core assets of their business.
Immergo, a provider of streaming technology has acquired Frankly’s content management software (CMS). Frankly had served as an Immergo reseller in the United States, offering Immergo’s suite of solutions to its customers. Meanwhile, XPR has acquired Frankly’s PR distribution business.
Frankly’s CMS and PR distribution assets have generated approximately $1.6 million in combined annual revenue, and GameSquare sold these non-core assets for a total consideration of $2.2 million that will be paid over a three-year period.
“We continue to pursue strategies that streamline our business, add non-dilutive capital, and prioritize our high-growth, high-margin businesses. Over the past six months we have divested four non-core assets for a total consideration of nearly $16 million, while acquiring FaZe Clan in all stock for the equivalent of $14 million and sold 49 per cent of FaZe Media to Matt Kalish for $11 million,” GameSquare CEO Justin Kenna said in a news release. “Selling our non-core CMS and PR distribution assets also eliminates approximately $2.3 million of annual expenses, adding to our cost reduction strategies and our pursuit of profitability.”
He added that recent non-core asset sales have been completed at an average valuation of approximately 1.4 times trailing-12 month sales, compared with GameSquare’s current market cap of approximately 0.4 times trailing 12-month proforma sales.
GameSquare Holdings is an international gaming and esports company with headquarters in Toronto.
GameSquare stock last traded at US$1.35 per share.
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(Top image: GameSquare Holdings)
