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

On May 31, 2024, GameSquare Holdings, Inc. (NASDAQ:GAME), based in Frisco, Texas, and its subsidiary Frankly Media LLC, sold specific non-core assets. Immergo acquired Frankly's Content Management Software, and XPR acquired its PR distribution business. These assets generated approximately $1.6 million in annual revenue and were sold for $2.2 million, payable over three years. Additionally, GameSquare eliminated around $2.3 million in annual operating expenses related to these businesses.

CEO Justin Kenna stated, "We continue to pursue strategies that streamline our business, add non-dilutive capital, and prioritize high-growth, high-margin businesses. Over the past six months, we have divested four non-core assets for nearly $16 million while acquiring FaZe Clan and selling 49% of FaZe Media."

Kenna emphasized that recent asset sales had been completed at an average valuation of 1.4x trailing-12 month sales, compared to GameSquare's current market cap of approximately 0.4x trailing 12-month proforma sales. The CEO believes these actions reflect the company's strategies to create shareholder value.