Beasley Broadcast Group Significantly Expands Esports Platform With Acquisition of Overwatch League’s Houston Outlaws
November 14 2019 - 7:05PM
Beasley Broadcast Group, Inc. (Nasdaq: BBGI) (“Beasley” or the
“Company”), a multi-platform media company providing advertising
and digital marketing solutions across the United States through
its radio broadcast and digital operations, announced today that it
acquired the Overwatch League’s Houston Outlaws esports team from
an affiliate of Immortals, LLC (d/b/a Immortals Gaming Club).
The Overwatch League is the first major global
professional esports league with city-based teams across Asia,
Europe, and North America. Overwatch was created by globally
acclaimed publisher Blizzard Entertainment (a division of
Activision Blizzard—NASDAQ: ATVI), whose iconic franchises have
helped lay the foundations and push the boundaries of professional
esports over the last 15 years. Overwatch was built from the ground
up for online competition, with memorable characters and fast-paced
action designed for the most engaging gameplay and spectator
experiences. The Overwatch League will begin its third season in
February of 2020, with each of the league’s teams hosting matches
in their home markets. The Outlaws will remain officially based in
Houston, Texas and will continue to represent the Houston, Austin,
and San Antonio markets.
Beasley’s acquisition of the Houston Outlaws
again expands its role in the fast-growing esports space and
reflects the Company’s focus on premium esports programming and
content. Beasley’s other investments in esports include Team
Renegades (investment in April 2019), an esports organization
consisting of five teams, based in Detroit, Michigan and
CheckpointXP (acquired Fall of 2018), a weekly syndicated esports
lifestyle show. CheckpointXP programming is currently featured on
approximately 70 radio stations across the United States on the Sun
Broadcast Network; on daily podcasts on Amazon’s video game
streaming platform, Twitch; and, on CheckpointXP On Campus, the
first collegiate-based esports show in the US.
Commenting on the transaction, Caroline Beasley,
Chief Executive Officer, said, “The acquisition of the Houston
Outlaws significantly expands our growing esports platform. The
Houston Outlaws represent a rare investment opportunity, as there
are only 20 Overwatch League teams in the world, and the
transaction partners Beasley with Blizzard Entertainment and its
parent company, Activision Blizzard, a leading global developer and
publisher of interactive entertainment content and services.
“Beasley is very excited to expand its
operations to Houston, which is home to one of the largest esports
fan bases in the US. Our growing esports infrastructure and
management combined with our experience with team Renegades,
success in hosting and promoting large events and our national
esports content hub—BeasleyXP—are key factors in our expectations
for long-term returns from this investment. We look forward to
initial contributions from this exciting development when the
league’s third season begins in February.
“The acquisition of the Houston Outlaws furthers
our revenue and cash flow diversification strategies. We believe
the power of our media footprint, including 65 highly-rated radio
stations in large- and mid-sized markets, combined with our 24/7
coverage of esports news, will allow us to build the value of the
Outlaws franchise through a range of revenue sources, including
ticket sales, advertising, sponsorship, licensing, e-commerce, and
other partnerships.”
“The Houston Outlaws have a fantastic new
ownership team and we’re excited to welcome the Beasley Media Group
to the Overwatch League,” said Pete Vlastelica, president and CEO
of Activision Blizzard Esports and Overwatch League commissioner.
“We look forward to working with them and ensuring a smooth
transition for the team, the players, and the fans. Outlaws fans
are incredibly passionate and 2020 is going to be an exciting year
for the entire league.”
Caroline Beasley concluded, “This opportunity is
another meaningful step forward as we expand Beasley’s involvement
in esports, one of the fastest growing forms of entertainment in
the US and the world. We look forward to realizing the strategic
benefits of the Houston Outlaws transaction in 2020 as we continue
to advance BeasleyXP’s esports initiatives focused on leveraging
our premium content and brands across all platforms. We believe
this approach will enable us to deliver great local, national, and
global content, while creating an even stronger marketing platform
for advertisers and enhancing shareholder value.”
Financial details of the transaction were not
disclosed.
About Beasley Broadcast
GroupCelebrating its 58th anniversary this year, Beasley
Broadcast Group, Inc., (www.bbgi.com) was founded in 1961 by George
G. Beasley who remains the Company’s Chairman of the Board. Beasley
Broadcast Group owns and operates 65 stations (47 FM and 18 AM) in
15 large- and mid-size markets in the United States. Approximately
19 million consumers listen to Beasley radio stations weekly
over-the-air, online and on smartphones and tablets, and millions
regularly engage with the Company’s brands and personalities
through digital platforms such as Facebook, Twitter, text, apps and
email. For more information, please visit www.bbgi.com.
Note Regarding Forward-Looking
StatementsStatements in this release that are
“forward-looking statements” are based upon current expectations
and assumptions, and involve certain risks and uncertainties within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Words or expressions such as “looking ahead,” “look
forward,” “intends,” “believe,” “hope,” “plan,” “expects,”
“expected,” “anticipates” or variations of such words and similar
expressions are intended to identify such forward-looking
statements. Forward-looking statements by their nature address
matters that are, to different degrees, uncertain, such as
statements about expected income; shareholder value; revenues; and
growth. Key risks are described in our reports filed with the SEC
including in our annual report on Form 10-K and quarterly reports
on Form 10-Q. Readers should note that forward-looking
statements are subject to change and to inherent risks and
uncertainties and may be impacted by several factors,
including:
- external economic forces that could
have a material adverse impact on our advertising revenues and
results of operations;
- the ability of our radio stations
to compete effectively in their respective markets for advertising
revenues;
- our ability to develop compelling
and differentiated digital content, products and services;
- audience acceptance of our content,
particularly our radio programs;
- our ability to respond to changes
in technology, standards and services that affect the radio
industry;
- our dependence on federally issued
licenses subject to extensive federal regulation;
- actions by the FCC or new
legislation affecting the radio industry;
- our dependence on selected market
clusters of radio stations for a material portion of our net
revenue;
- credit risk on our accounts
receivable;
- the risk that our FCC licenses
and/or goodwill could become impaired;
- our substantial debt levels and the
potential effect of restrictive debt covenants on our operational
flexibility and ability to pay dividends;
- the failure or destruction of the
internet, satellite systems and transmitter facilities that we
depend upon to distribute our programming;
- disruptions or security breaches of
our information technology infrastructure;
- the loss of key personnel;
- the fact that we are controlled by
the Beasley family, which creates difficulties for any attempt to
gain control of us;
- our ability to integrate acquired
businesses and achieve fully the strategic and financial objectives
related thereto and their impact on our financial condition and
results of operations; and
- other economic, business,
competitive, and regulatory factors affecting our business,
including those set forth in our filings with the SEC.
Our actual performance and results could differ
materially because of these factors and other factors discussed in
our SEC filings, including but not limited to our annual reports on
Form 10-K or quarterly reports on Form 10-Q, copies of which can be
obtained from the SEC, www.sec.gov, or our website, www.bbgi.com.
All information in this release is as of November 14, 2019, and we
undertake no obligation to update the information contained herein
to actual results or changes to our expectations.
CONTACT: |
|
Heidi Raphael Chief Communications Officer Beasley
Broadcast Group, Inc. 239/659-7332 or
Heidi.raphael@bbgi.com |
Joseph Jaffoni, Jennifer NeumanJCIR212/835-8500 or
bbgi@jcir.com |
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