Motorsport Games Inc. develops and publishes racing simulation games and operates esports content tied to official motorsport series. Company news commonly covers Le Mans Ultimate content updates, online competition features, RaceControl subscriptions, and licensed series content for the 24 Hours of Le Mans, the FIA World Endurance Championship, and the European Le Mans Series.
Updates also address financial results, share repurchases, shareholder meeting matters, and governance actions. The company’s portfolio includes the rFactor 2 and KartKraft simulation platforms, while its esports activities include events such as the Le Mans Virtual Series and technology partnerships connected to F1 Arcade.
Motorsport Games (NASDAQ: MSGM), a leading racing game developer, will participate in a fireside chat on April 20, 2021, hosted by Mike Hickey from The Benchmark Company. This event aims to discuss the company’s role in the racing organization and esports ecosystem.
Motorsport Games develops officially licensed video games for renowned motorsports, including NASCAR and Le Mans. It is recognized as an award-winning esports partner for various racing championships, including FIA World Rallycross and the eNASCAR Heat Pro League.
Motorsport Games has appointed Gérard Neveu as Motorsports Advisor to enhance connections with the motorsport industry. Neveu, former CEO of the FIA World Endurance Championship, previously staged the largest virtual racing event, the 24 Hours of Le Mans Virtual, attracting 14.2 million viewers. His role will focus on fostering projects in esports and ensuring authenticity. Motorsport Games is expanding with acquisitions of KartKraft and plans for rFactor2, aiming to solidify its position in the virtual racing space.
Motorsport Games Inc (NASDAQ: MSGM) has announced a binding term sheet to acquire Digital Tales USA LLC, enhancing its mobile gaming portfolio and introducing two-wheel racing. This strategic move aims to position Motorsport Games as a leader in the virtual racing world, following their IPO in January 2021. The acquisition complements existing licenses, including NASCAR and the 24 Hours of Le Mans, and is part of a broader strategy that includes recent acquisitions like KartKraft and Studio397. This expansion targets the growing mobile gaming market of 2.6 billion players globally.
Motorsport Games reported a 60% revenue increase to $19.0 million for the fiscal year 2020, driven by strong sales of NASCAR Heat. The gross profit rose to $12.4 million, achieving a 65% gross margin. The net loss decreased significantly to ($0.7 million) from ($5.8 million) in 2019. Q4 2020 revenue grew 26% to $2.9 million with gross profit at $1.6 million and a gross margin of 55%. The company also completed its IPO, raising approximately $62.9 million.
Motorsport Games (NASDAQ: MSGM) has successfully completed its acquisition of the KartKraft assets and business from Black Delta. This includes the KartKraft intellectual property and game assets. Key developers, including Founder Zach Griffin, will form a new studio within Motorsport Games Australia to advance the game. This acquisition enhances Motorsport Games' product offerings and strengthens its position in the racing game market. KartKraft, currently in Early Access on Steam, features customizable karts and licensed tracks.
Motorsport Games Inc (NASDAQ: MSGM) announced it has signed an agreement to acquire 10.1% of 704Games from Ascend FS, Inc. for the same per share price as its earlier agreement with PlayFast Games, LLC to buy 7.6% of 704Games. This acquisition, set to close on April 1, 2021, will give Motorsport Games complete ownership of 704Games. The transaction is expected to enhance net earnings per share from 2022 onwards and simplify financial reporting. Additionally, it will resolve legal claims from Ascend and PlayFast against Motorsport Games.
Motorsport Games Inc (MSGM) has announced its acquisition of PlayFast Games, which holds a 7.6% stake in 704Games. The deal, valued at approximately $10.75 million, involves 366,541 shares of Motorsport Games and a cash component based on share price. While this transaction is not expected to impact net income per share this year, it is projected to become accretive starting in 2022. Additionally, the acquisition will resolve all claims between Motorsport Games and PlayFast, increasing Motorsport Games' ownership in 704Games from 82.2% to 89.9%.
Motorsport Games (NASDAQ: MSGM) has entered a binding term sheet to acquire Studio397 BV, the creator of the rFactor 2 racing simulation platform, from Luminis International BV. This strategic acquisition aims to leverage Studio397's capabilities to enhance rFactor 2 and develop new projects using Motorsport Games' resources. With plans for continued branding of Studio397, existing management and development teams will remain intact. The acquisition signals Motorsport Games' ambition to lead in the virtual racing space and capitalize on the rFactor 2 technology for future growth.
Motorsport Games (NASDAQ: MSGM) has launched Traxion.gg, a dedicated platform for virtual motorsport and racing games. The site offers news, reviews, and insights across various racing game genres, from simulations to arcade classics. This launch adds a third vertical to Motorsport Games' portfolio, which already includes game development and esports broadcasting. CEO Dmitry Kozko emphasized Traxion's role as a community hub for racing enthusiasts, promising continuous growth and evolution in content offerings.
Motorsport Games has signed a binding term sheet to acquire KartKraft, a leading kart racing simulator, enhancing its gaming portfolio. This acquisition includes all assets and key development talent from Black Delta, aiming to develop a new studio, Motorsport Games Australia. This move underscores the company's commitment to the racing genre and plans to leverage the expertise of KartKraft's team to elevate the game's success. The acquisition aligns with Motorsport Games' growth strategy in the esports ecosystem and product development.