Echelon Capital provides new price points Gamelancer Media CEO, Jon Dwyer shares an updated analysis report from Echelon.
See Jon’s attached LinkedIn post below:
Fantastic note from Echelon Capital Markets this morning discussing the very compelling Gamelancer Media story! With a current market cap of $60,000,000, our business is steadily growing, with Echelon targeting our valuation between $164,540,000-$246,810,000 CAD when taking the following into consideration.
Morning note from Echelon Wealth Partners #capitalmarkets: Highlighting Gamelancer
– Compelling Value in the Esports/Gaming Vertical This morning we highlight Gamelancer (GMNG-CSE, $60M Mkt Cap) as we continue to be bullish on the name as a unique, differentiated story in the esports/media space.
GMNG is a social gaming leader with a very significant audience across a range of owned & operated media channels. GMNG’s provides brands w/ access to the highly valuable but elusive gaming audience, mainly concentrated on Gen Z & Millennial gamers.
This is an area of the media that has significant growth & value but is difficult for traditional companies to efficiently target. Management is deeply experienced in the media/gaming spaces & are very well positioned to scale the business & drive growth going forward.
Some highlights below on the value of GMNG’s audience:
- #Apple & #tiktok together will take 34% of every new ad dollar that is spent outside China this year 87.0%
- TikTok users are above the age of 18, with 62% being between the ages of 18 to 35
- 2nd most popular category Globally on TikTok is Gaming.
70% of users play games regularly on their smartphones & 65% have made an in-game purchase in the last 3-6 months
- #GMNG has only a 6% duplication rate across all its channels, growing an average of 30K users per day (& almost 70K per day for July 2022)
- GMNG’s engagement rate across it’s TikTok Channels are 11.6% to 18.7%; some of the highest globally for their channel size (Sources: Barclays, Company Data) Looking at precedent comp deals, pre-rev mobile apps/social media names have been typically acquired for between $20 to $250 per user.
These users are owned by these platforms & so a meaningful discount is warranted for GMNG given their users are on 3rd party channels.
Even with a healthy discount, the undervaluation of GMNG is clearly evident.
- Using a conservative multiple of $5 to $7.50/user (90% to 95% discount) justifies $0.38 to $0.57/share (175% to 300% upside) value for GMNG given their 33M total follower count
- GMNG is a very compelling way to play the Esports theme, with a highly experienced leadership team & compelling value prop to brands looking to reach this audience.
- GMNG just strengthened their B/S with debt capital & is well capitalized for growth.
See below for further details:
See original LinkedIn post here: https://www.linkedin.com/posts/jon-dwyer-1b82a961_capitalmarkets-apple-tiktok-activity-6994364193038618624-GhSQ?utm_source=share&utm_medium=member_ios