Mobile game developer, iCandy (ASX: ICI) is seeking to cash in on the burgeoning eSports industry, investing A$110,000 for a 42.55% stake in eSports company, ESPL (eSports Pro League).
Under the co-founding deal, it is expected that the two companies will work together under the agreement to develop online and on-ground gaming events, ESPL suggesting the ‘on-ground’ aspect is a distinguishing factor. Leveraging their existing network of digital infrastructure, iCandy is expected to engage their gaming community of over 350 million users worldwide to bring additional opportunities in the way of ads and sponsoring.
‘eSports’, for those who aren’t familiar with the term, typically involves organised video-game tournaments between professionals, individuals, and teams via online platforms. iCandy’s news comes after earlier in the year announcing the establishment of a dedicated eSport division to take advantage of the booming industry.
It is estimated that the eSport industry currently generates USD $1.1 billion in revenue globally, leading to the rise of ‘Professional Gamers’. In 2019, the Fortnite World Cup offered a $30 million prize pool.
With online tournaments the marquee events for eSports which can be replicated across a variety of online games, ESPL is in the process of building its online tournament platform where they intend to launch their first season in February 2020.
Shares in iCandy surged today after the announcement, reaching an intraday high of $0.047, a 30% uplight on the previous day’s close of $0.036.