MGT Capital Investments to Sell Fantasy Sports Assets
MGT Capital Investments is a company that operates social and money gaming sites online. Possibly the most widely known platform for MGT’s gaming sites is the popular Fantasy Football site, DraftDay. However, recently they decided to sell their ownership of the company.
MGT Capital Investments signed a contract to sell its daily fantasy sports assets, which includes DraftDay. DraftDay is the third largest site in the daily fantasy sports business. The deal with benefit MGT Capital Investments with $7 million worth of assets, $4 million of which is cash. But MGT is not letting go completely. MGT will keep an interest in the asset. Common stocks and warrants are included in the earnings that they will continue to receive. This deal is expected to finalize by the end of this quarter.
Random Outcome USA, Inc. is the lucky new recipient of this money-maker. They will receive funds through investors within a global investment bank. These investors are gaming industry leaders in North America. After the financing end is taken care of, the newly created business will be managed by Sportech Digital. Sportech Digital is part of Sportech Pic, one of the world’s largest business to business companies in the sports, gaming, and technology arenas. Sportech Pic has thrived in the monitored gaming business for almost a century.
This move has high hopes of increasing stockholders’ value. This movement of property is believed to be a great move in that it will increase the stockholders’ value, solidify business relationships, and have better access to capital.