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- SportsBusiness Journal had to shift from a focus on paper news to an Internet site and now makes a big investment on a new type of content: esports
- looking at predictions that include the esports industry possibly growing at a 30% compound rate through 2020, pushing the market to $1.5 billion in annual revenue
Street & Smith’s SportsBusiness Journal (SBJ) has been looking at predictions that include the esports industry possibly growing at a 30% compound rate through 2020, pushing the market to $1.5 billion in annual revenue, and SBJ wants more action in it. As such, SBJ has made what it refers to as a “significant investment” in The Esports Observer, a leading source for esports business news and insights.
The specific investment has not been revealed, but its mostly a cash investment with synergies in resources, says The Esports Observer CEO Christopher Hana. The investment will help Hana expand his business to tap into more esports events and conferences, develop new reports and further focus on gaining an audience in the U.S.
The Esports Observer is only two years old and was built to solve a perceived problem that there existed a lack of reliable esports information.
“We wanted to bring transparency to the esports market,” says Hana. “Targeting professionals and everyone who wanted to understand the space better.”
Talks between The Esports Observer and SBJ loosely started a couple of months ago. Hana believes the timing for the investment is appropriate, especially in the wake of an announcement that the New York Yankees are now involved in esports through an investment partnership with Vision Esports, the largest shareholder of esports franchise Echo Fox, founded by three-time NBA champion Rick Fox.
The Esports Observer was launched as part of the BITKRAFT Esports Ventures network in 2015, which raised $18 million euro earlier this year.
“We are incredibly proud to have one of our early portfolio companies enter into a strategic partnership with SBJ,” says BITKRAFT Esports Ventures Founding Partner Jens Hilgers. “BITKRAFT’s investment thesis was to help create more transparency in the esports industry and enable industry professionals and companies entering esports to make better informed business decisions. With Chris Hana at the helm, this partnerships enables The Esports Observer to continue fulfilling this mission.â€
Darren Heitner is the Founder of South Florida-based HEITNER LEGAL, P.L.L.C. and Sports Agent Blog. He authored the book, How to Play the Game: What Every Sports Attorney Needs to Know.Follow @DarrenHeitner