Capitalizing on The Biggest Entertainment Trend in a Decade
FN Media Group Presents Financialmorningpost.com Market Commentary
NEW YORK, July 15, 2020 /PRNewswire/ -- Investors are looking for the next post-coronavirus trend. And it's already here. While the world is in varying degrees of lockdown, investors are home looking to profit from one stealth industry that's getting big money from investors. Mentioned in today's commentary includes: Electronic Arts Inc. (NASDAQ: EA), Take-Two Interactive Software, Inc. (NASDAQ: TTWO), Activision Blizzard, Inc. (NASDAQ: ATVI), DraftKings Inc. (NASDAQ: DKNG), Comcast Holdings Corp. (NYSE:CCZ).
Two years before the lockdown this industry hit $67 billion in revenues globally. But growth was steady rather than spectacular. Now, it's rolling out across the globe and one little-known company, FansUnite Entertainment Inc. (FANS.CN) (FUNFF.PK) is making all of the right moves.
Right now, entire generations -- young and old -- are now turning their attention to the computer screen. And they are interacting globally in a way they never have before. They're gaming online in a worldwide frenzy to replace entertainment as we know it.
This Investing Phenomenon Has Happened Twice Before
A stealth bull run has happened twice before in the online entertainment industry. Some players in the video game industry during the last supercycle in 2015 made a killing:
Electronic Arts (EA), of FIFA and Madden NFL video game fame, soared and netted some investors an astounding 1,261% just between 2012 and 2018. And it's not sleeping on the esports boom, either. It has made significant moves to build its competitive gaming brand over the years and shows no sign of slowing.
Take-Two Interactive (TTWO) increased 1,665% on the wild ride with 'Red Dead Redemption' and 'Grand Theft Auto'. In the esports realm, Two-Two owns half of the professional esports organization NBA 2K League which has teamed up with the NBA to give teams the option to create their own esports team associated with their brand.
Investors also saw massive 690% gain on Activision Blizzard (ATVI). Blizzard was a pioneer in the esports world, with its competitive hit, Starcraft. Since then, it's become a dominant force in the industry, with other competitive games such as HearthStone, Heroes of the Storm, and of course, Overwatch. Activision Blizzard's 'Overwatch' game attracted 20 million online players in only one month when it launched in 2015.
Video game developers barely missed a beat as the video game supercycle spawned an online gaming supercycle. The next supercycle might be starting now and FansUnite (FANS.CN) (FUNFF.PK) could be one of the big winners. Why?
GlobalData projects the video game industry to go from $131 billion in 2019 to $300 billion in just three years. Those are numbers even bigger than the 8-18X increases in the first, 6-year supercycle.
Even Alphabet's Google is jumping into this gaming space with its Stadia streaming platform. But the rivalry is heated with competition for the same from Chinese giant Tencent, Sony and Microsoft. OVER 7.4 MILLION PLAYERS NOW are streaming on Twitch alone, with hundreds of millions of viewers possible.
This Stealth Industry Will Have 645 Million Viewers (Maybe More) by 2022
Online gaming isn't just for the younger generations anymore. Business shutdowns, travel restrictions and social distancing mean that masses of people around the world are spending significant time gaming online.
Verizon found that gaming traffic increased by 75% during the lockdown enforced due to the COVID pandemic. And user bases for gaming companies like FansUnite (FANS.CN) (FUNFF.PK) are skyrocketing. In a three-day period in March alone, Activision Blizzard saw a single game downloaded 15 million times.
There are already 2.5 billion gamers worldwide. That's a billion more than just five years ago. Fortnite, one of the most popular games ever, had over 250 million registered users as of March 2019.
Entire generations are turning their attention to high-adrenaline streaming esports. That's where FansUnite Entertainment Inc comes in.
Global esports revenues will surpass $1 billion in 2020 for the first time. And that doesn't even account for revenues from broadcasting platforms. The esports audience will soar to nearly 500 million people already this year.
That's 6X greater than Television which is dying much like the radio it displaced in the 1950s. Esports is now even getting to be bigger than sports itself. Even major broadcasters are jumping on board.
Comcast (CCZ) knows exactly how big the esports industry will be. That's why it's recently announced it will build a $50-million arena specifically for esports.
The 'Fusion Arena' will be housed in downtown Philadelphia and it will be able to comfortably seat over 3,500 people. It will also have more than 2,000 square feet of LED screens, training facilities and private rooms for players to stream video to their fans.
Technology changes. Viewing patterns change. And when people play traditional sports or online games, the betting isn't far behind.
Gaming Stocks Are Starting To Rocket
Investors at home are flooding in to capitalize on this new trend. A few well-placed investments could have brought an early retirement for thousands of investors. That's because gaming stocks are soaring since the COVID crisis.
DraftKings (DKNG) shares went from $9.80 to a high of $43.80 and some project it to go even higher. That's already a 346% gain for investors in just a few months. Investors who jumped on this when it went public in April were handsomely rewarded. It's now valued at around $11.5 billion—bigger than the casino giants.
Penn National Gaming has gone from $18 this time last year to $33--and at least one analyst has got a $39 price target on it now. And FansUnite Entertainment Inc. is an early stage way to play this megatrend.
They offer bets on anything you can think of--from online gaming and virtual sports to award shows and reality TV shows. You can even bet on table tennis, snooker and horse racing. Investors can now profit even more on people betting on the gaming market…rather than on the gaming market itself.
U.S. States Need Tax Revenue: Taxes From The Betting Industry Is Entering A Massive Growth Phase
The U.S. is the largest sports betting venue in the world, estimated at more than $150 billion. That's why states are rushing to stake their claims on the US portion of the $2-trillion global betting industry by legalizing it—and taxing it.
Right now, any of the 50 U.S. states are at liberty to legalize sports betting in its own jurisdiction. Nearly two years after the shackles were removed, ~75% of US states have introduced legislation to legalize sports wagering, with sports betting legal in one form or another in 24 states.
California is eyeing up to $700 million in revenue alone from online sports betting. And they need it to take a chunk out of a $54-billion COVID-19 deficit. Every little bit helps on the path out of the pandemic depression. And all those states in need of this revenue could fuel the growth of little-known stocks like FansUnite.
#1 This industry is all about consolidation right now …
And FansUnite is on a major acquisition binge. In March, it acquired UK-based McBookie, with its $100M in betting volume in the last three years, and now it's acquiring Canadian esports giant Askott Entertainment--a key player with Tier 1 partners.
That acquisition should make FansUnite one of Canada's leading online gaming companies, focused on sports betting, esports wagering and casino games. Now it's planning its U.S. entry.
#2 Proprietary tech wins this game
This industry is all about the tech, which is where "bookies" become digital gods. And FANS is all about harnessing its own tech as a solution to other players in the industry.
It's built out infrastructure to connect the world's gaming platforms through new technology. FansUnite is targeting the entire industry.
FANS has its own proprietary sportsbook as well as a full-service white label solution aimed at taking in other sports books through the integration of cutting-edge technologies and business growth opportunities, both launching later this year. It's not tying itself to just one market. It's a business model that thrives with or without COVID-19.
#3 Globally, EVERYONE's got their game on
The pandemic's got everyone—young and old—glued to their screen. And they aren't likely to give it up.
FansUnite, by buying Askott, will be covering every angle of this gaming environment—from propriety tech for a B2B revenue stream, to online gaming, esports and sports betting. That positions it to succeed regardless of which sports are hot, which games are not. They don't need the NFL.
And they're benefiting from two massive, interconnected industries at once: Online gaming and online sports betting. One which can reach $286 billion in a few years, and one that could get a portion of $2 trillion with legalization.
#4 The next supercycle is now …
And FansUnite (FANS.CN) (FUNFF.PK) has a major new acquisition, Askott, which on closing will position it among the top spots in Canada and knocking at the door of the United States, where an economically crippling pandemic is about to push legalization of online sports betting.
The last supercycle saw some investors who jumped into gaming on time leave with big profits. This pandemic-boosted supercycle will net the ones who pick the right "horses" with big profits too.
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
FORWARD-LOOKING STATEMENTS: Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Forward-looking statements may include, without limitation, statements relating to future outlook and anticipated events, such as the satisfaction of the conditions precedent and subsequent consummation of the Askott transaction; realizing FansUnite's plans regarding expanded consumer base, business base, offerings and gaming licenses; that Saxon Shadforth's contacts and experience will be a major asset; the growth of the online gambling market; its plan to grow by acquisition; the combined companies' ability to scale their platforms, to enter into new and emerging international gaming markets, to capture the growing demand of gamblers and to become a global gaming leader; the strengths, characteristics and potential of the combined company; the company's ability to become one of Canada's leading gaming companies; the ability to launch a proprietary sportsbook as well as selling software to other sports books; and discussion of future plans, projections, objectives, estimates and forecasts and the timing related thereto. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of FansUnite to be materially different from those expressed or implied by such forward-looking statements. Matters that may affect the outcome of these forward looking statements include that online gaming may not turn out to have as large a market, grow as quickly or be as lucrative as currently predicted; FANS may not be able to offer a competitive product or scale up as thought because of consumer tastes for its online product, lack of capital, lack of facilities, regulatory compliance requirements or lack of suitable employees or contacts; Mr. Shadforth's experience and contacts may not result in material benefits; FANS's intellectual property rights applications may not be granted and even if granted, may not adequately protect FANS' intellectual property rights; risk factors for the online sports gaming industry in general also affect FANS including without limitation the following: competitors may offer better terms to potential M&A acquisition targets, or no such target may actually be acquired even if agreements are signed; competitors may offer better online gaming products luring away FANS's customers; technology changes rapidly in the gaming and esports business and if FANS fails to anticipate or successfully implement new technologies or adopt new business strategies, technologies or methods, the quality, timeliness and competitiveness of its products and services may suffer; FANS may experience security breaches and cyber threats; regulators may impose significant hurdles to online gaming companies; FANS may not receive applied for gaming licenses; FANS's business could be adversely affected if consumer protection, data privacy and security practices are not adequate, or perceived as being inadequate, to prevent data breaches, or by the application of consumer protection and data privacy laws generally; the products or services FANS distributes through its platform may contain defects, which could adversely affect FANS' reputation. Additional information regarding the risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's Non-Offering Prospectus dated March 27, 2020 filed on its issuer profile on SEDAR at www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking statements.
DISCLAIMERS
PAID ADVERTISEMENT. This communication is a paid advertisement and is not a recommendation to buy or sell securities. Financialmorningpost.com, Joint Salty Holdings Corp., and their owners, managers, employees, and assigns (collectively, "we" or the "Company") has been paid by the profiled company to disseminate this communication. In this case the Company has been paid by FansUnite seven thousand US dollars per month on a 12 months contract for market awareness including postings and articles. This compensation is a major conflict with our ability to be unbiased, more specifically:
This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our newsletter and on our website may be based on end-of- day or intraday data. We have been compensated by FansUnite to conduct investor awareness advertising and marketing for FANS. Financialmorningpost.com receives financial compensation to promote public companies. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of FANS. The profiled company, or their affiliates may liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our alerts experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur.
SHARE OWNERSHIP. The owner of FinancialMorningPost.com owns shares of this featured company and therefore has an additional incentive to see the featured company's stock perform well. The owner of FinancialMorningPost.com will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of FinancialMorningPost.com will be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
RISK OF INVESTING. Investing is inherently risky. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any account will or is likely to achieve profits similar to those discussed.
DISCLAIMER: Financialmorningpost.com (FMP) is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with Financialmorningpost.com or any company mentioned herein. The commentary, views and opinions expressed in this release by Financialmorningpost.com are solely those of Financialmorningpost.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Contact Information:
Media Contact e-mail: [email protected]
U.S. Phone: +1(954)345-0611
SOURCE Financialmorningpost.com
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article