GIG to Acquire 45 Million Euros Worth of Catena Brands
Catena Media plc has been a strong company in the online gaming industry for several years already. Now Catena has entered into an agreement to sell AskGamblers as well as two of its other brands to Gaming Innovation Group Inc.
On its official website, Catena recently announced that it has signed a deal with Gaming Innovation Group, or GIG for short, to sell its three major casino affiliate brands: AskGamblers, JohnSlots, and NewCasinos. The agreed price for the deal has been set at 45 million EUR and should go forward in Q3 2023.
The deal comes after a devastating year for Catena, who reported over 10 millions in revenue decline in the first nine months of 2022.
Michael Daly, the Catena Media CEO, had this to say:
Today’s agreement is a major step on our journey to focus the business on online sports betting and casino affiliation in high-growth, regulated markets in the Americas. I am confident that in Gaming Innovation Group we have found a buyer that will provide a strong environment for AskGamblers and the other brands and their talented people to develop and grow. We are now in an even stronger financial position and equipped to capture the exciting market opportunities ahead of us and to tatke steps to broaden Catena Media’s exposure and access to the US capital markets over time”, Daly answered when asked about the company’s future.Michael Daly, CEO, Catena Media CEO
In other words, it sounds like Catena Media wanted to trim some European fat in order to make way for more growth in North and South America.
The CEO of Gaming Innovation Group, Richard Brown, was also excited about the new business deal. He said:
We are extremely excited to take over the AskGamblers brand. Combining it with our media technology and operational capabilities provides a great opportunity to expand our global reach and to deliver a path for AskGamblers to continue with its strong evolution. We look forward to integrating the staff and website assets into GiG.Richard Brown, CEO, Gaming Innovation Group
At any given time, there is a large number of developments going on in the world of iGaming. Just a couple of weeks ago, we also reported on the news of Genesis Global Limited shaking things up in terms of its company structure.
As with every business out there, Catena Media has made a choice that it hopes will affect the company’s bottom line favourably. It remains to be seen whether they will be able to turn their ship around.
Since Catena made the announcement 5 days earlier, the stock price of the company has dropped 14.22%. On a year-over-year over basis, though, the stock is already down 60.64%.