SALT LAKE CITY, UT / ACCESSWIRE / July 16, 2015 / Having already achieved widespread success with its unique business model of luxury dining combined with several different forms of live entertainment, Latitude 360 (OTCQB:LATX) recently expanded its growing portfolio with the acquisition of Major League Fantasy, a leader in the world of daily fantasy sports, a market that has exploded in popularity in recent years.
Last year over 57. million Americans played fantasy sports, and by the end of 2016 it is estimated that fantasy sports will make up a 6 to 10 billion dollar industry, with daily fantasy games accounting for a growing stake in those figures. With this move, Latitude 360, which currently trades at $.52 cents per share, will enter into the multi-billion dollar industry of fantasy sports, boasting its own proprietary live fantasy game to take place in its restaurants, called "360 Fantasy Live." At $8.5 million in cash and stock, the deal is viewed as a favorable one for the company, as MLF had recently tripled in size and popularity just as the daily fantasy sports market is booming.
The acquisition of MLF allows Latitude 360 to position itself as one of the first live, multimedia venues to offer in-house, high-stakes, competitive daily fantasy events. The "360 Fantasy Live" experience coincides with a major move by daily fantasy juggernaut DraftKings to partner with Los Angeles sports mega-plex the Staples Center to create a DraftKings bar and lounge where fantasy players can engage in the latest DraftKings games.
With the success of DraftKings and its rival, FanDuel, Yahoo (YHOO) recently decided the time was right to join the daily fantasy fray, launching its first ever daily format. While the company has long been one of the leaders in seasonal fantasy sports, their first entry into daily gaming marks an industry boom reflected in recent numbers that indicate over 55 million North Americans have engaged in fantasy sports this year alone. Right at the apex of this market explosion, LATX will offer one of the most original daily fantasy experiences available to consumers. It is the latest in a series of moves made by the company that are intended to gradually branch into new markets.
About this latest move, CEO of Major Leage Fantasy, Jesse Merl, who will transition into the role of President of "360 Fantasy Live," said: "Together with Latitude, we are creating a new way to play. We are confident that along with the ability to interact socially through our product, the ability to join in the energy of a live group viewing experience is going to be a differentiator that matters when people decide where to be during big games."
Indeed, the "big games" will be taking place not only on Latitude 360's TV screens, but also in its "VIP Rooms," where the entry fee alone for its Fantasy Live games will max out at $25,000. The company expects its patrons to partake in its high-stakes fantasy games while enjoying all of the amenities of the standard "360 Experience," which includes a comedy club, cigar lounge, entertainment theater, bowling lanes, and more.
Amid the high-profile MLF acquisition, Latitude 360 is also focused on the overall expansion of its brick and mortar locations, as several new 360 venues will soon pop up in major cities like Boston, Atlantic City, and Chicago. While the size of each venue typically falls within the 60,000-80,000 square-foot range, the company is also planning a mammoth grand opening of a 100,000 square-foot location at the center of New York's financial district in Wall Street.
Latitude 360's existing customer base should blend seamlessly with its target daily fantasy audience, as fantasy players tend to profile as middle to upper-class males from 18 to 49 years of age. By focusing on the young professional demographic in key cities, Latitude 360's "something-for-everyone" approach, aims to attract these consumers and more, as those uninterested in high-stakes fantasy games can also just relax and eat a delicious meal or visit the cigar lounge.
Latitude 360 remains a focused, driven company with several key components in place that are designed to build a loyal customer base, such as its "360 Club" membership program. "360 Fantasy Live" should prove to be yet another such endeavor for the company, as these events offer a unique, live daily fantasy gaming experience unrivaled at any other establishments. With its venture into fantasy sports, LATX once again demonstrates that it is a company to watch closely for investors in upscale dining. Most importantly, this venture could prove to be an even bigger winner outside the venue four walls for LATX as well.
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SOURCE: Seraphim Strategies