‘Awful Business’ Or The New Gold Rush? The Most Valuable Companies In Esports Are Surging

If you are looking for a way to quantify the rising influence of esports, look no further than FaZe Clan.

The video game lifestyle company has amassed 19 million social followers across YouTube, Twitter and Instagram, more than the Dallas Cowboys (7.2 million) and the New York Yankees (6 million) combined. Last month, it hopped on the esports franchise trend, licensing its name to Atlanta Esports Ventures’s Call of Duty League team, the Atlanta FaZe, and it says it’s landed a string of seven-figure sponsorship deals from companies that include Nissan and Gfuel.

The Atlanta FaZe partnership was the first of its kind for the nine-year-old company, which sponsors more than 40 individual video game players competing in six different gaming titles. FaZe Clan has a value of $240 million, landing it at No. 4 on the second annual Forbes ranking of the most valuable esports organizations.

“I wouldn’t trade businesses with anyone else on this list,” says Lee Trink, FaZe Clan’s co-owner and CEO.

He has a reason to be cocky. Video game competitions reach a global audience of 454 million, with at least 190 million more expected to be watching in three years, per industry analysts Newzoo. The average fan, according to Nielsen, is a millennial male, makes nearly $70,000 a year and favors streaming platforms like Twitch, YouTube and Mixer over traditional television. Sponsorship, advertising and media rights have almost doubled since 2017, to $897 million.

All told, global revenue for esports will reach $1.1 billion this year, up 27% from 2018, with North America accounting for 40% of that pie. Forbes now counts 13 companies with a value of more than $100 million, with the average valuation hitting $217 million, up 52% over last year.

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Published by Reinout te Brake

Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry. Check out his games podcast; https://www.game-consultant.com

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