News Flash, Nov. 2: GameOn announced today that it signed a binding letter of intent to acquire real-time fantasy technology FanClash. The move signals GameOn's entry into the $18.6 billion fantasy sports and entertainment market, expected to reach $48.6 billion by 2027. Read the details here.
Today's traditional content producers are struggling to stay relevant in a changing media environment in which many of the classic tricks of the trade have become obsolete. Where they see struggle, GameOn founder and CEO Matt Bailey sees nothing but opportunity to engage with today's consumers where they are.
GameOn Entertainment Technologies Inc. (GET:CSE; GMETF:OTC; 9E7:FSE) is a white-label B2B platform designed to increase audience engagement through the “gamification” of linear, media-like television.
Formerly an executive with the company that owns the Brooklyn Nets and Barclays Center, Bailey left the role to become GameOn's CEO and Director.
The GameOn lineup also boasts recently appointed Chairman, J Moses, who achieved success on projects such as BMG Music and Grand Theft Auto.
“GameOn Entertainment Technologies looks like an immediate buy here.” —Clive Maund
“People think of the video game business as graphics and storylines, which, of course, is true. But really at its core, you're engaging with content, you're engaging with community members,” Moses says. “The product that Matt and his team are building is something that's much more akin to the basic elements of video games.”
GameOn’s first product was a prediction game where a player watching a live sports match could predict things in real time to earn points, climb leaderboards, and compete with peers. More recently, the company advanced to an NFT (non-fungible token) predictor that leverages “collectibles.”
GameOn’s recently announced partnership with the bestselling Chibi Dinos NFT project is their latest revenue driver in this space.
An NFT video of a slam dunk by National Basketball Association star LeBron James also made headlines in April when it sold for more than $387,000 on NBA Top Shot, the league’s NFT platform.
What the Analysts Say About Investing in GameOn
Technical analyst Clive Maund is a fan of GET: “On its latest six-month chart we can see that, after it came to market at the very end of May or the start of June, the price plunged before drifting lower still to settle into a base pattern that started to form at the end of August."
In a conversation with Nick Chen, CFA and partner at Hydra Capital Partners in Toronto, Ontario, Chen told Streetwise why he thinks GameOn has such strong growth potential.
Chen, who specializes in seeking out under-the-radar microcap companies, specified that he looks primarily for investments in early-stage firms that have the potential to be game changers in their space.
The firm's business model includes opportunities for licensing fees and revenue sharing from ads, brand sponsorships, and sales.
Chen told Streetwise, "What GameOn does best is gamifying entertainment, and investing in the company allows me to get into a very good sub-sector at a very low valuation."
Streetwise Reports sat down with Long State principal Philip Ho and Jessie Chen to learn why the NYC-based private investment firm put its money on GameOn.
GameOn can create a community around any content,” said Ho, “whether it's a TV show or a sports event. It’s a very vibrant business model.”
Breaking Down the GameOn Business Model
Hear more about GameOn on Streetwise Live!
Matt Bailey filled Streetwise in on how it all works. “We go to potential partners like sports leagues, TV networks, broadcasters. And if they already have a marketplace with NFTs and collectibles, we add a layer of gamification over the top of it and give those collectibles a utility that's never been seen before,” Bailey explains. “So you're not just buying and selling in a very static engagement; you're now able to buy or earn that NFT or collectible and then use it in a game.”
“Empty hulks of businesses that attempted and failed at gamification are strewn along the digital highway. Bailey has seen the carnage. He insists GameOn is different.”
GameOn has partnered with NYC-based Blockparty, who can provide a marketplace for partners. GameOn then adds the gamification layer.
Bailey sees GameOn entering fantasy sports — After all, GET boasts Sean Hurley, who ran the sportsbook at DraftKings, as an advisor. But for the moment, Bailey says they'll stick with sports and other nonscripted programming like reality TV.
“GameOn will introduce MXPlayer to its free-to-play cricket prediction games. Both companies will split ad revenue 50/50.”
Bailey says the goal is to one day “uplist” and join the best-in-class tech stocks on the NASDAQ.
However, Moses sees another likely path. “I believe [GameOn] will be a very attractive M&A target.” And if anyone has the track record to back their words up, it's J.
The Many Successes of J Moses
In the mid-1990s, J Moses headed BMG Interactive, a meager group of top-drawer game developers tucked into a subsidiary of private German firm Bertelsmann, known for its diverse global holdings, some of which were in radio, television, and music — as in BMG Music.
By late 1997, BMG Interactive, a little-known division of BMG Music, had developed 13 video games. One of those titles would go on to sell some 350 million copies. It was Grand Theft Auto (GTA).
Moses green-lighted the first version of GTA but "a game like GTA didn't necessarily fit into the ethos of the business. So after we created the business and built all these games, (BMG) sold most of the games as a package,” Moses tells Streetwise.
Take-Two Interactive Software (TTWO:NASDAQ) paid 1.85 million shares or about US$14 million in March 1998 for the titles and some developers. But not Moses.
Moses went to Moscow where he launched MTV Russia before returning to America to manage online community and gaming company UGO Networks.
He guided the sale of UGO to media mogul Hearst Corp. in 2007 (which sold it to Fox in 2020) before joining some familiar faces at Take Two Interactive as an independent director. Over the next 14 years, Moses helped steer the gaming company, known not only for GTA but other hits such as Max Payne and Manhunt, to unprecedented share price highs.
“I'm still very much involved with these titles,” Moses says, though he is also without a doubt very much an active part of Team GameOn.
GameOn has a market cap of CA$18.8 million, and it trades in a 52-week range of $0.225 and $0.98 with 61,696,536 million shares outstanding.
Want more information about getting in on the game? Read all about Bailey and Moses’ latest tech disruptor here.
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Disclosure:
1) Brian Sylvester compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None. His company has a financial relationship with the following companies referred to in this article: None.
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