X1 Esports and Entertainment Ltd. (CSE:XONE) knows what it takes to level up.
Launched in 2021, Vancouver-based X1 Esports is a media and gaming company with a portfolio of diversified assets targeting different aspects of the video game and creator economy industries as it seeks to attract the attention of Generation Z.
The company first purchased a competitive European esport gaming organization, and then went on to acquire a boutique talent agency, and most recently, a leading news source for a popular online game. All while X1 was working to go public in July 2022.
READ: X1 Esports closes acquisition of assets of Rocket League news outlet ShiftRLE
According to CEO Mark Elfenbein, the plan is to continually increase revenue through mergers and acquisition, organic growth, and increased synergy between its assets.
Proof of the bold strategy came just days after X1’s successful public offering, when the company entered an agreement to acquire Tyrus Talent Services. Tyrus provides integrated services for digital content creators and influencers in the gaming and “lifestyle” industry.
“The addition of Tyrus to the company’s portfolio will help to establish X1 as an advertising sales organization with access to some of the most sought-after content creators in the video games category,” said Elfenbein in an interview with Proactive.
In an industry that reinvents itself continuously, X1 Esports has to be light on its feet, he noted.
“In 2022, 50 million people worldwide consider themselves content creators, from gardening tips to the biggest category, playing video games. When we combine these two industries – content creation and video games – these are the areas X1 is playing in,” Elfenbein said.
Influencers play large role in gaming
The team at X1 is aware that strong social media content creators or “influencers” play a large role in the success of the video gaming industry.
“Even a single content creator or personality, with a powerful enough social reach, has the power to focus the attention of millions of raving fans all over the world. And just like in major league sports with tens of billions of dollars on the line, the longer that attention is held, the higher the profit potential,” he said.
Elfenbein himself is no slouch. As chief executive officer at X1, Elfenbein oversees the company’s operations, building on more than 20 years of experience leading rapidly growing companies in new emerging industries. He previously served as chief revenue officer, president or CEO of five publicly traded companies in the areas of music, gaming, mobile and AI, which combined raised financing in excess of US$1 billion.
A gamer himself, Elfenbein is also a former Grammy awards voting member and billboard music awards winner. His family founded the iconic Canadian global TV marketing company, K-Tel International, a leading disruptor in the music and consumer products industry. Elfenbein earned a BBA degree from the University of Manitoba. He resides in the Minneapolis, Minnesota area.
Newest acquisitions
The company also owns and operates a growing esports franchise, Rix.GG, which operates esports teams in games such as League of Legends Wild Rift. This includes an all-women’s team that competes in Valorant.
Rix.GG – which launched in July 2020 during the first pandemic lockdown, is a leading provider of all-female and marginalized gender tournaments with broadcast in the European Union.
Most recently, X1 picked up ShiftRLE, a digital news source for Rocket League players and fans, that’s fast becoming a household name.
An independent news source for Rocket League fans, Shift first rose to prominence by getting exclusive, behind-the-scenes information on Rocket League roster moves and tryouts before they were public knowledge.
With five-minute games that feature non-stop action, the car-soccer hybrid game has seen significant growth with players across demographics since its launch, now seeing global averages of six million players a day.
Las Vegas-based ShiftRLE, led by co-founders Achilleas Fotiou and Jalen Jones, has demonstrated consistent user audience growth since launching in 2020. Shift currently reaches over eight million impressions during the seasonal period of the Rocket League Championship Series (RLCS), while seeing growth of 14 million impressions during transfer periods when the roster news cycle is most active. With operations in America and Europe, the organization has established an international presence in the esports industry.
Shift plays a key role in ensuring the conversation around Rocket League esports continues beyond the pitch, through coverage and insight regarding roster transactions and general esport news, ensuring fans stay engaged even during slower competitive periods.
“We’re envisioning a TSN in Canada or an ESPN where you come to Shift to view all your video highlights, your statistics, play your fantasy sports and certainly it would be open to potentially adding coverage of other games out there,” Elfenbein said.
Between Tyrus, Rix.GG and ShiftRLE, X1 Esports has a triple-headed arrow in its quiver.
“ShiftRLE adds to the advertising and sponsorships inventory,” Elfenbein said. “With our previously announced acquisition of Tyrus, we have significant sponsors and advertisers, going after that Gen Z user, which is the user that caters to Shift as well. It’s a tangible asset for us.”
Contact the author at susie@proactiveinvestors.com
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