The Esports Advocate can exclusively report that London-based gaming and esports media company Ginx TV Ltd. is exploring an acquisition or further investment and is being represented by London-based venture capital and private equity firm Capital A. In a perfect scenario—according to what is being pitched to VCs—an investor would acquire the company, keep its full-time staff intact (it lists 21 full-time employees and 17+ people in outsourced roles)— and leave the day-to-day operations in the hands of the current CEO, Michiel Bakker.
According to a document obtained by TEA being shared by Capital A to potential VCs, the unnamed esports media group (which TEA has confirmed is Ginx) is based in London, specializes in “creating and monetizing cross-platform (TV & digital) esports and gaming content,” and is “available to acquire.” Metadata from the document describes it as “GinxTV – Teaser V2” and lists multiple Capital A employees as points of contact.
It also notes that the company’s “experienced hires” have “near full autonomy on a day-to-day basis,” and that the “CEO is looking to stay,” which is a selling point to attract investors who would have concerns that leadership and staff might leave after an acquisition.
Finally, the document notes that the company has its own production arm, which it uses to produce a variety of video and provide content creation services for clients such as “publishers, brands and esports organizations.”
Ginx TV Ltd. CEO Michiel Bakker issued the following statement to TEA on Friday morning via email: “Ginx is always working on its capital structure alongside growing the company. We have built a profitable gaming/esports business with diverse, predictable, and recurring revenue streams. As Ginx becomes increasingly global and digital, as opposed to being a pure-play TV company, we are currently looking to bring on board investors that are aligned with that trajectory and can help us accelerate our growth. We are involved in several discussions, but I am not at liberty to disclose detail.”
Ginx has raised capital from a number of sources over the years including £569.1K ($679K USD) in December of 2015 through an equity crowdfunding campaign with Crowdcube, and undisclosed investments in September of 2016 from UK-based terrestrial TV networks Sky and ITV, who both took “significant minority stakes in the company.”
While Bakker claims that Ginx is a profitable business, the company realized losses of £162.9K ($194.3K) in 2020 and £263.1K ($313.9K) in 2021, according to public filings—Ginx has yet to file its FY 2022 financial report as of this writing. All told, the company has spent approximately £9.99M ($11.86M) since 2010. It is important to note that, due to the British company reporting requirements, a balance sheet loss does not necessarily contradict Bakker’s profitability claim. It should also be noted that the materials obtained by TEA, estimate that the company generated revenue of £2.2M, or $2.5M for FY 2022.
Editor’s note: The currency conversion rates from British Pound (GBP) to US Dollar (USD) are based on the exchange rate of £1 GBP = $1.20 USD for Feb. 24, 2023.