On April 28, 2017 the CEO announced that the company will be covering events for the DreamHack organization and also the company had hired a new negotiations specialist to help complete a new deal with the National Football League. He also noted this information on Twitter.
On April 26, 2017, the company delivered its 2016 Annual Report. The market celebrated the news as traders bought large stakes in the company and made the share price spike. Fast traders and savvy individuals profited more than 95% in a short time span. We assessed the financial figures reported and found out that the amount of assets is almost 4 times the amount of liabilities. Thus, the balance sheet seems quite clean. The most important assets are license agreements and the most relevant liability is long term debt.
In the new 10-k, the company noted that on August 10, 2016, a total of $140,000 in debt had been converted into stock. This is great news for equity holders as their financial risk was drastically reduced as a result of these transactions. Additionally, it may explain the big swings in the share price in 2016.
The NY Times just recently discussed the video game business. We selected the most important information in the article. The most astonishing number provided is included in the following paragraph:
“Having already upended the entertainment world — global revenue for games is $20 billion higher than the music industry’s and is chasing that of the movie business — the games industry has turned its ambitions toward the lucrative world of professional video game competition, widely known as e-sports.” Source
“$20 billion higher than the music industry” means that the company is being undervalued by the market.