GameSquare Announces Acquisition of Click Management, Profitably Expanding Talent Capabilities
Rhea-AI Summary
GameSquare (NASDAQ: GAME) has announced the $8.5 million acquisition of Click Management, a leading talent management firm. Click generated $12.4 million in revenue in 2024 and managed over 545 commercial deals with 75 active talent.
The acquisition includes an initial $4.5 million cash payment at close, $4.0 million within 60 days of December 31, 2025, and potential earnouts of up to $3.0 million. GameSquare projects Click will contribute $14.5 million in annualized pro-forma revenue and $1.2 million in EBITDA for H2 2025.
As part of its optimization strategy, GameSquare will divest Frankly Media and consolidate Sideqik into Stream Hatchet. The company expects H2 2025 proforma revenue of $36.8 million and adjusted EBITDA of $2.9 million. GameSquare maintains a strong financial position with $87.7 million in cash and onchain holdings, with no debt.
Positive
- Acquisition expected to be immediately accretive to profitability
- Click Management generated $12.4 million revenue in 2024 with 545 commercial deals
- Expected $14.5M annualized revenue and $1.2M EBITDA contribution from Click
- Strong balance sheet with $87.7M in cash/onchain holdings and zero debt
- Consolidation of Sideqik expected to reduce annual operating expenses by $1.25M
- Exit from low-margin Frankly operations to improve overall profitability
Negative
- Frankly Media divestment eliminates $46.9M in annual sales
- Additional $3M earnout payment contingent on performance targets
- Integration and consolidation risks across multiple business units
News Market Reaction 2 Alerts
On the day this news was published, GAME declined 0.46%, reflecting a mild negative market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $336K from the company's valuation, bringing the market cap to $73M at that time.
Data tracked by StockTitan Argus on the day of publication.
Acquisition of high-performing agency expected to be accretive to profitability in 2025
As part of the integration, GameSquare to divest Frankly Media, and consolidate Sideqik into Stream Hatchet
Management expects second half of 2025 proforma revenue of
Regularly named as one of the top digital creator agencies by Business Insider, and recently awarded "Best Talent Management Agency" by industry body AiMCO, Click closed over 545 commercial deals globally in 2024, with an annual revenue of
"Talent is at the core of today's creator economy, and bringing Click into the GameSquare family accelerates our long-term strategy," said Justin Kenna, CEO of GameSquare. "Click has built one of the strongest rosters and commercial engines in the creator economy. Together, we'll unlock new opportunities for brands and creators, accelerate profitable growth, and cement GameSquare's position at the forefront of gaming, media, and onchain innovation."
Building the Future of Creator-Led Media
The addition of Click strengthens GameSquare's talent management platform, adding a proven team and a portfolio of top-tier talent relationships. Together, GameSquare and Click will:
- Expand the Company's reach into creator-led brand partnerships and activations;
- Accelerate growth opportunities within GameSquare's media, agency, and experiences ecosystem; and
- Drive immediate cost and revenue synergies by integrating Click throughout GameSquare's existing platform.
Under the terms of the purchase agreement, GameSquare will acquire all outstanding shares of Click for an initial cash payment of
Grace
Emma Barnes, Co-CEO of Click, added: "This is such an exciting milestone for Click and our creators. In partnership with GameSquare, we can provide more resources, more reach, and more opportunities for our creators to succeed on a global scale."
Profit Focused Integration and Optimization Strategies
In conjunction with the acquisition, GameSquare is pursuing several initiatives to optimize the Company's operations, sharpen strategic focus and improve profitability.
GameSquare is immediately integrating Click into its media and agency business, which already includes Zoned Gaming and GameSquare Experiences.
GameSquare is discontinuing operations of Frankly, its programmatic advertising solutions provider. The closing of Frankly reflects GameSquare's strategic shift toward optimizing its business model by exiting non-core, lower-margin operations. This decision also aligns with the Company's goal of eliminating operating losses and cash burn while concentrating resources on high growth areas such as agency, media and technology. For the year ending December 31, 2024, Frankly contributed
Finally, the Company has consolidated Sideqik, a technology enabled CRM solutions provider to brands and marketers, into Stream Hatchet, a business intelligence suite that offers game publishers, brands, and IP holders with unparalleled insights to navigate the complexities of the emerging content form. Going forward, the consolidated business will go to market as Hatchet and provide a comprehensive offering of technology and managed services to global brands, game publishers and marketers. The consolidation is expected to reduce annual operating expenses by
Financial Outlook
On a proforma basis, which includes Click's financial results for the second half of 2025, with the expected contribution of the Company's onchain treasury management strategy and the closing of Frankly, the Company expects the following:
Second Half 2025 | |
Revenue | |
Adjusted EBITDA |
As of August 31, 2025, the Company had
The Company is not able to provide, without unreasonable effort, a reconciliation of the guidance for adjusted EBITDA to the most directly comparable GAAP measure for the second half of fiscal 2025 because the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments included in the most directly comparable GAAP measure that would be necessary for such reconciliations, including, but not limited to, changes in the fair value of market-based investments, acquisition-related expenses, and other non-recurring items that cannot reasonably be estimated in advance. These adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company's control and as a result it is also unable to predict their probable significance. Therefore, because management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results in accordance with GAAP, it is unable to provide a reconciliation of the non-GAAP measures included in its second half of fiscal 2025 guidance.
GameSquare expects to provide full-year 2026 guidance in conjunction with its third quarter 2025 earnings release in November 2025.
"GameSquare is entering a new era supported by the growing success of our onchain treasury management strategy and ongoing optimization efforts. With the addition of Click, the divestment of Frankly, and the consolidation of Hatchet, we're leaner, stronger, and more profitable than ever. We're building a platform that can scale globally, deliver consistent results, and create real value for our shareholders," Kenna concluded.
About GameSquare Holdings, Inc.
GameSquare (NASDAQ: GAME) is a cutting-edge media, entertainment, and technology company transforming how brands and publishers connect with Gen Z, Gen Alpha, and Millennial audiences. With a platform that spans award-winning creative services, advanced analytics, and FaZe Clan, one of the most iconic gaming organizations, we operate one of the largest gaming media networks in
To learn more, visit www.gamesquare.com and holdings.gamesquare.com to track the value of GameSquare's onchain assets in real time.
About Click Management
Click Management is a leading talent management company representing creators and digital influencers. Founded by Grace Watkins, Emma Barnes and Elliott Watkins, Click has established itself as a global leader in digital talent management, and a trusted partner for talent and brands alike, helping creators grow their businesses and connecting them with world-class opportunities.
For more information, visit www.clickmedia.group.
Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the Company's future performance, the success of the acquisition, and integration, the benefits of the Company's divestiture of Frankly and restructuring efforts, revenue, growth and profitability; and the Company's ability to execute on its current and future business plans. These forward-looking statements are provided only to provide information currently available to us and are not intended to serve as and must not be relied on by any investor as, a guarantee, assurance or definitive statement of fact or probability. Forward-looking statements are necessarily based upon a number of estimates and assumptions which include, but are not limited to: the Company's ability to grow its business and being able to execute on its business plans, the financial and business benefits of acquisitions, divestitures, and restructuring efforts, the success of Company's vendors and partners in their provision of services to the Company, the Company being able to recognize and capitalize on opportunities and the Company continuing to attract qualified personnel to supports its development requirements. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the Company's ability to achieve its objectives, the Company successfully executing its growth strategy, the ability of the Company to obtain future financings or complete offerings on acceptable terms, failure to leverage the Company's portfolio across entertainment and media platforms, dependence on the Company's key personnel and general business, economic, competitive, political and social uncertainties. These risk factors are not intended to represent a complete list of the factors that could affect the Company which are discussed in the Company's most recent MD&A. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. GameSquare assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
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SOURCE GameSquare
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