CJ Louey, Esports Advisor, for NGame Esports shares his perspective about acquisitions and investments in esports.
ICON Esports acquired Chiefs Esports Club. In the future do you anticipate more esports organizations merging to maintain relevance and to keep a competitive edge?
As the esports industry grows, we will see a lot of activity between teams to gain a competitive edge including mergers and acquisitions. We are in an environment where the number of esport teams and players are growing exponentially. As we see in the Chief’s Esports Club acquisition, ICON is looking to keep their status as a premier organization above the growing competition. This is not just relatable to the top. I think we will continue to see similar activity among organizations of all sizes because that is what tends to happen in a growing industry.
A good amount of esports organizations are backed by investment and venture capital firms. Do you think this is good for the esports industry?
If you were to search anything related to esports, one of the first aspects you may find is its growing popularity. You would find that esports has a young fan base that will continue to grow in the foreseeable future. That being said, popularity does not always correlate with profitability. It is a young industry that needs time and resources to develop. Investments into the industry will help a lot of teams and other esports organizations during a time when funds are needed most.