Gfinity acquires Epicstream as it seeks growth amid financial troubles
But sales process is progressing as planned
Esports firm Gfinity has acquired media outlet Epicstream for an undisclosed sum.
The deal gives Gfinity ownership of the company's online news community, which focuses on fantasy and sci-fi across video games, film, television, comics and card games.
Gfinity's acquisition comes amid a period of financial turbulence for the esports firm.
Earlier this year, the company revealed a plan to reduce costs by 60%, which included its CEO and chairman stepping down.
Its full-year financials showed this plan was relatively effective, bringing adjusted operating losses down from £8.6 million in 2019 to £5.5 million.
In October, Gfinity announced it had begun a formal sales process, although no potential buyer had emerged by that point.
As part of this process, the company appointed financial services firm FinnCap as an adviser, which suggested strategic growth options such as partnerships and acquisitions.
The takeover of Epicstream is one such acquisition. Gfinity's directors believe Epicstream's social channels can be monetised and its user numbers and revenues grown using techniques the esports company has already used on its own platforms.
Most of Epicstream's users are based in the US and Canada, but its UK following -- which is where Gfinity is based -- is growing.
In the announcement, Gfinity confirmed the formal sales process was "progressing as planned" with the company continuing to engage in conversations and evaluating other options to grow the business.
Gfinity Digital Media remains on course to generate revenue of £2 million in the current financial year, having enjoyed a record month in November where revenues exceeded £275,000 for the first time.
As part of the acquisition, Epicstream's two founders will receive 10 million new ordinary shares in Gfinity, and will be entitled to an annual payment of 30% of Epicstream's revenues for the first two years.