RE:ESportsHi again Gator,
Ive been tracking their esports growth closely. While I dont rest my shorter term share price thesis on esports, ive been pretty fascinated with what theyve done there.
They basically decided to enter the space with nothing and created an ap while creating content. They now have a database of over well two thousand original videos documenting various esports events and themes. They are best in class, without a doubt, and have basically invented their space. They currently have a YouTube channel approaching 700,000 subscribers and 15 million views a month. ESPN presently has a pathetic channel and Yahoo tried and left the category last year. Late last year thescore hired a guy who is supposed to know how to monetize the while thing.
What I cant figure out is what value to place on their esports division, so I basically call it zero and any value will be sort of like found money for them. Revenue would be an easy way to make up a value, but we dont know what, if any, that is. Socialblade.com is a sight that assesses YouTube channel rankings and presently predicts theScore as having between $62,000 and 1 million in revenue per year from the channel (just advertising; not counting if they have sponsorships or sales of product).
So it isnt easy to figure out what its all worth and its in early growth right now. What can be said, however, is that it is a unique part of their business, living in its own world with its own ap. They could theoretically sell the esports division (perhaps to a massive company that wants into the space and maybe tried on their own and failed) without any effect on the traditional ap and gambling business.
All that said, gambling on esports is another quickly growing area in the gambling sector so there are some tantalizing angles to think up on that end too...