Video game holding company X1 Esports & Entertainment has announced that it has 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 Gen Z and increase overall profits.
Following the closing of the $350,000 deal, X1 will own all of the issued and outstanding member interests of Tyrus. The agreed purchase price is $150,000 in cash and 555,555 newly issued X1 shares with a value of $0.45 each. A bonus payment of $100,000 in cash or stock was also negotiated, on the condition that Tyrus manage $1.75 million in revenue in its first fiscal year.
X1 diversifies its assets
Vancouver-based X1 Esports primarily operates through its RixGG esports franchise. She 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 broadcasts, free game codes and other opportunities. The company also offers video editing, platform management and social media management. He is present on YouTube, TikTok and Twitch.
X1 Esports is also set to acquire Shift RLE, an online media outlet primarily focused on “Rocket League” gaming. With these two purchases, X1 will be involved in competitive gaming, content creation and a media brand. The company will then have a diversified and synergistic portfolio better able to adapt to the challenges of the industry.
The deal will benefit both companies
Mark Elfenbein, CEO of X1, said the acquisition would grant X1 access to top video game content creators and cement the company’s place in the advertising sales market. He expressed optimism about the purchase and hailed Tyrus’ potential for success.
The Tyrus platform skillfully bridges the gap between international brands and the gaming ecosystem.
Mark Elfenbein, CEO of X1
Tyrus CEO Amanda Solomon also drew attention to increased opportunities following the new partnership. She noted Team Tyrus’ enthusiasm to join X1 and use the synergies between the two companies to be successful in the future.
I am extremely 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’ position as an industry disruptor focused on connecting global brands with appealing Gen Z viewers through his roster of content creators.
X1’s diversification follows a trend in esports businesses. Although many have tried to treat esports as a standalone business, most experts now agree that it is not a viable long-term strategy. They believe that the best use for the industry is to acquire customers for other industries and that a diverse portfolio is a critical success factor.