GameSquare Sells Non-Core Content Management Software and PR Media Distribution Assets

FRISCO, TX / ACCESSWIRE / June 3, 2024 / GameSquare Holdings, Inc. ("GameSquare") (NASDAQ:GAME) , announces that on May 31, 2024, GameSquare and its Frankly Media LLC subsidiary ("Frankly") sold certain non-core assets. Immergo acquired Frankly's Content Management Software ("CMS") and XPR acquired Frankly's PR distribution business. Combined Frankly's CMS and PR distribution assets generated approximately $1.6 million in annual revenue, and GameSquare sold these non-core assets for a total consideration of $2.2 million that will be paid over a three-year period. GameSquare also removed approximately $2.3 million of annual operating expenses associated with these businesses.

"We continue to pursue strategies that streamline our business, add non-dilutive capital, and prioritize our high-growth, high-margin businesses. Over the past six months we have divested four non-core assets for a total consideration of nearly $16 million, while acquiring FaZe Clan in all stock for the equivalent of $14 million and sold 49% of FaZe Media to Matt Kalish for $11 million. Selling our non-core CMS and PR distribution assets also eliminates approximately $2.3 million of annual expenses, adding to our cost reduction strategies and our pursuit of profitability," stated Justin Kenna, CEO of GameSquare.

"I am pleased to announce that recent non-core asset sales have been completed at an average valuation of approximately 1.4x trailing-12 month sales, compared to GameSquare's current market cap of approximately 0.4x trailing 12-month proforma sales. I believe this reflects the strategies we are following to unlock and create value for our shareholders," concluded Mr. Kenna.

ABOUT GAMESQUARE:

GameSquare's (NASDAQ: GAME) mission is to revolutionize the way brands and game publishers connect with hard-to-reach Gen Z, Gen Alpha, and Millennial audiences. Our next generation media, entertainment, and technology capabilities drive compelling outcomes for creators and maximize our brand partners' return on investment. Through our purpose-built platform, we provide award winning marketing and creative services, offer leading data and analytics solutions, and amplify awareness through Faze Clan, one of the most prominent and influential gaming organizations in the world. With an audience reach of 1 billion digitally native consumers across our media network and roster of creators, we are reshaping the landscape of digital media and immersive entertainment. GameSquare's largest investors are Dallas Cowboys owner Jerry Jones and the Goff family.

Forward-Looking Information

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Corporate Contact

Lou Schwartz, President
Phone: (216) 464-6400
Email: ir@gamesquare.com

Investor Relations

Andrew Berger
Phone: (216) 464-6400
Email: ir@gamesquare.com

Media Relations

Chelsey Northern / The Untold
Phone: (254) 855-4028
Email: pr@gamesquare.com

SOURCE: GameSquare Holdings, Inc.