TORONTO /PRNewswire/ — Engine Media Holdings, Inc. (“Engine” or the “Company”; TSX-V: GAME;OTCQB: MLLLF), following a detailed strategic review in connection with the merger of Torque Esports, Frankly Media and WinView Games, announced that it has completed the sale of IDEAS+CARS, The Race Media, WTF1 and Driver DataBase (collectively the “Motorsport Assets”) to Ideas + Cars Holdings Limited, a third party investment group based in the UK. As a result, Engine is eliminating its funding obligations related to the cost of maintaining and growing these auto media businesses and certain accrued liabilities. In addition, this action enables Engine Media to reorganize its leadership team by moving to a single CEO role under Lou Schwartz, with Tom Rogers remaining Executive Chairman.
In overseeing the strategic review, Rogers noted that “Torque Esports assets that folded into Engine Media as part of the three-way merger with Winview Games and Frankly Media are critical elements of the combined company. Those assets are Stream Hatchet, the esports data and measurement business; UMG – Ultimate Multiparty Gaming – the esports competitive gaming platform; and, Eden Games, the mobile game publisher that, among other games, created F1, the leading mobile game for Formula One fans. The other auto related businesses being sold are not focused on gaming but instead, are developing esport and traditional sport racing audiences with the creation and production of auto racing content.”
While reducing its cost base, Engine will maintain the ability to work with the Motorsports Assets through a series of licensing deals and cross company agreements with the acquiring group, to collaborate on sales and marketing, as well as for the Motorsport Assets to promote esports published games and competitions of Engine going forward. In addition, Engine will continue to support racing as a category through its competitive gaming platform, UMG, as it expands relationships across the entire esports sector as the leading destination for tournament play.
“While we recognize the strong following the Motorsport Assets have, this deal allows us to apply greater focus on the biggest macro opportunities for our business. We will use our resources to invest in and build Stream Hatchet (whose CEO was just named esports executive of the year), UMG, Winview, Frankly Media and Eden Games,” stated Lou Schwartz.
Rogers emphasized, “the two businesses will continue to work together. The Engine Board is pleased to have a continued link to the motorsport businesses with some opportunities to work together on projects like World’s Fastest Gamer (“WFG”) – with the Engine Ad Sales Network able to drive advertising revenue for the franchise and use the great TV project developed from WFG to promote our gaming efforts.”
Concurrently, Darren Cox, who had oversight of the Motorsports Assets as Co-CEO of Engine, has stepped down from his role as Co-CEO of Engine, but will continue on as a director on Engine’s Board through the end of 2020. Additionally, the Company has made payment to Mr. Cox in the amount of £97,0000, reflecting a bonus that previously accrued and has granted Mr. Cox 75,944 RSUs, which will vest 30 days following the grant thereof.
About Engine Media Holdings, Inc.
Engine Media is focused on accelerating new, live, immersive esports and interactive gaming experiences for consumers through its partnerships with traditional and emerging media companies. The company was formed through the combination of Torque Esports Corp., Frankly Inc., and WinView, Inc. and trades publicly under the ticker symbol (TSX-V: GAME) (OTCQB: MLLLF). Engine Media will generate revenue through a combination of: direct-to-consumer and subscription fees; streaming technology and data SaaS-based offerings; programmatic advertising and sponsorships; as well as intellectual property licensing fees. To date, the combined companies have clients comprised of more than 1,200 television, print and radio brands including CNN, ESPN, Discovery / Eurosport, Fox, Vice, Newsweek and Cumulus; dozens of gaming and technology companies including EA, Activision, Blizzard, Take2Interactive, Microsoft, Google, Twitch and Ubisoft; and have connectivity into hundreds of millions of homes around the world through their content, distribution and technology.
Cautionary Statement on Forward-Looking Information
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Engine to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information contained in this news release include, but are not limited to, any regulatory or other approvals required in connection therewith and Engine’s expectations for growth in its operations and business. In respect of the forward-looking information contained herein, Engine has provided such statements and information in reliance on certain assumptions that management believed to be reasonable at the time, including assumptions as to obtaining required regulatory approvals. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements stated herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on forward-looking information contained in this news release.
The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Engine does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Engine Media Holdings, Inc.