ESE Entertainment has announced a binding share purchase agreement to acquire Frenzy, an eSports media and technology company out of Europe.

Frenzy owns and operates the necessary equipment which allows it to create reality shows across the globe. These reality shows include the production and broadcast of eSports and gaming events.

eSports is a sector of entertainment within gaming that is growing at a compound annual growth rate of 24%.

As stated under the terms of the agreement, ESE Entertainment will acquire a 100% interest all issued and outstanding shares of Frenzy. ESE will pay CAD $1,242,500 in cash at closing, CAD $1,242,500 in cash payable six months following the closing, as well as 656,606 common shares of the company issuable on closing; and up to 1,363,720 common shares to be released in four equal installments that will occur bi-annually.

The gaming industry has already seen record investments, mergers and acquisitions this year.

Smaller companies, like Frenzy, have seen strong valuations and incredible interest from larger publishers and developers looking to take advantage of a red-hot market. A market that’s expected to continue growing at strong rates for years to come.

This acquisition of Frenzy shows the industry is expanding its footprint into an investment space not solely focused on game development itself, but in the ecosystem where gamers compete, interact, and produce high revenue viewership.

As big gaming companies begin searching for new revenue streams, smaller developers, publishers, media companies, and others in the gaming and gaming-related space, could see valuations rise dramatically.

Among the latest drivers of the gaming economy will be companies who hold patents for in-game transactions of real-world goods. As the metaverse begins expanding beyond games, ecommerce within it could hit the multi-billion level in a short time.

Read more about the Frenzy acquisition, HERE

Or learn more about in-game transaction patents, HERE