X1 Esports and Entertainment Ltd (CSE:XONE) said it has entered into an asset purchase agreement to acquire ShiftRLE, an online news outlet focused on the popular video game, Rocket League.
Mark Elfenbein, CEO of X1 hailed the addition: "This will not only help us to deliver on our core strategic priorities of building a diverse video game ecosystem and providing global brands access to a GenZ audience, but will strengthen X1's position in video games media," he said in a statement.
X1 is a Vancouver-based video games and media portfolio company that owns and operates a growing esports franchise RixGG. X1 focuses on video game competitions for cash prizes, and operations ancillary to such competitions, such as merchandising and hosting tournaments.
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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 RLCS, while seeing growth of 14 million impressions during transfer periods where the roster news cycle is most active. With operations in America and Europe, the organization has established an international presence in the esports industry.
"We are thrilled to become a part of the X1 family moving forward as they see the potential we have in the growth of Rocket League as an esport," said Jalen Jones, a co-founder of ShiftRLE in the release.
"With X1 behind us, we plan to take Shift to the next level with our ultimate goal being to make Shift into a hub where Rocket League fans can get the latest highlights and statistics, and engage in interactive activities such as Pick 'Ems, Fantasy, and eventually tournaments of our own. We want Shift to act as a bridge between the casual and hardcore Rocket League players with engaging content that appeals to multiple audiences," said Jones.
Rocket League is one of the world's leading Esports games. 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 80 million players per month, according to Active Player.
Shift is an independent news source for Rocket League fans. It first rose to prominence by getting exclusive, behind-the-scenes information on Rocket League roster moves and tryouts before they were public knowledge.
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.
X1 will acquire 100% of the assets comprising ShiftRLE and have the benefit of ongoing services by the key personnel of ShiftRLE for an aggregate price of US$50,000 cash, of which $25,000 is payable at closing and $25,000 payable within 45 days after closing. Also, 333,333 common shares in the capital of X1 with a deemed issue price of C$0.45 per common share will be distributed to each of the four key personnel, plus a 7% share of gross revenues Shift earns in the first 36 months following closing to a maximum of US$250,000.
Contact the author at susie@proactiveinvestors.com