Dubai-based Riva Technology and Entertainment Limited (RTE) announced Friday that it has signed a letter of intent (non-binding term sheet) to acquire shares it “does not already own” in esports organization Galaxy Racer. RTE is a wholly-owned subsidiary of MSM Corporation International Limited.
Assuming that the transaction is completed (expected closing dates of the transaction and financial terms were not disclosed), a new holding company will be created called Celestial to house Galaxy racer and RTE, which will focus on “creating a media and sports conglomerate, initially targeted at the MENA region and the Indian subcontinent,” according to a release.
RTE also noted in its release that it plans to initiate a “substantial fundraising round to attract global investors” following completion of the transaction and is considering becoming a publicly-traded company on a “recognized securities exchange” in the future.
Dubai-based Galaxy Racer describes itself as a “transmedia powerhouse focused on esports, content creators, music and sports.“ The company has a presence in North America, Middle East North Africa (MENA), Southeast Asia (SEA), South Asia, and Europe—and through its Nigma Galaxy esports division (the result of a merger between Team Nigma and Galaxy Racer), it competes in Dota 2, League of Legends, Counter-Strike: Global Offensive, Fortnite, Valorant, PUBG Mobile, Battlegrounds Mobile India, and Free Fire.
RTE has investments in multiple companies including video streaming technology and hardware company SUB2r ($3.5M USD), OTT platform Recast ($8.2M), games publisher Rogue Games ($2.5M), and competitive gaming platform OKLetsPlay ($1M), among others, and holds a majority stake in game maker Firefly Games.
