E-Sports Traction & Discounted Valuation Warrants MP Entry
Our examination of the top gaming companies in the US has shown a valuation discount to Chinese media giant Tencent, warranting a Model Portfolio entry into Electronic Arts, Inc. (EA) as it continues to leverage on the growth potential in the gaming space and as e-sports gain traction in the market.The Edge View...
Tencent Holdings Ltd. (TCTZF, Market Cap $647bn): Among Tencent's many other media holdings, the company is owner of two of the most successful current gaming franchises, Fortnite (40% ownership in Fortnite’s parent Epic Games) and PlayerUnknown's Battlegrounds (PUBG). Additionally, it owns three of the biggest e-sports leagues: PUBG Global Championship (532m views in 2019), League of Legends (viewership of 100m people) and Rocket League Championship (18m hours of live viewership), and it leads the gaming and e-sports space on a global basis as a result.
Electronic Arts, Inc. (EA, Market Cap $40bn): In the e-sports space, EA (FY21E revenue of $6bn and Adjusted EBITDA of $2.1bn, margin 35.4%) has partnered with FIFA to host the FIFA eWorld Cup (launched in 2004) where the 2019 season generated an online viewership of 47m (an increase of 60% from 29m views in 2018).
Electronic Arts develops, markets, publishes and distributes games, content and services that can be played and watched on a variety of platforms, including game consoles, personal computers, and mobile phones. The company markets and sells its games and services through digital distribution channels and through retail channels. Digitally, the company's console games and services can be purchased through third-party storefronts. In its games and services, the company utilizes brands that it either wholly own or license from others. The company develops and publishes games and services across genres. Within and alongside its games, the company provides live services, including in-game purchases, downloadable content, and esports.
The Edge Group - Global Fundamental Catalyst Investing. The Edge provides investors with access to hidden corporate value from Global Special Situations using a pioneering approach to investments. Founded in 2005 by fund management and investment banking professionals to provide high quality, private equity-level research on Global Corporate Divestitures for the benefit of fundamental event-driven, growth and value-oriented investors in this difficult to track, but proven investment space.
The Edge will look to screen and analyze include Spinoffs; Reverse Morris Trusts; Squeeze Outs; Privatizations; Demutualization; Deep Discounted; Rights Issues; Rights Offering; Restructuring; Insider Purchases / Buying Change of Management / CEO Change; Deteriorating fundamentals; Post-Bankruptcy; Reorganization; Tender Offer; M&A Deals; Secondary Offering; Share Swap; Thrift Conversions; Share Buybacks; Activist; Mergers. All analyzed from a fundamental point of view.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.