Guild Esports Shares Gain After Creating 6th Professional Team

Shares of Guild Esports (LON: GILD) are gaining Friday after it announced the creation of its sixth professional team with the signing of a roster to compete in Apex Legends, a free-to-play hero shooter game.

The team is ranked within the top ten in Europe, and the players have signed one-year contracts with a renewal option for another year. In addition, they will receive an annual salary with performance incentives.

They will compete in the newly established Apex Legends Global Series, which will start on 16 October and has a prize pool of $5 million. 

Viewership for the Apex Legends Global Series game has been increasing over the past 12 months, and the competition has consistently ranked in the top five most-viewed on streaming website Twitch. 

Players of the franchise exceeded 100 million in 2020, according to EA. 

“There is potential for the Apex Legends ecosphere to see significant growth. As a result, the company believes that its investment in this team will contribute to a further increase in its network audience and open up multiple new revenue opportunities for the long term,” said Guild.

Kal Hourd, CEO at Guild Esports, described the company's plans:

“From the beginning, our goal has always been to bring together the best and most entertaining esports players to build an organisation that excites fans, attracts brands and provides teams with the opportunity to develop into champions. 

“Our new Apex team incorporates this ambition entirely, allowing us to continue disrupting the industry with advancements into new tournaments and representing Europe as a true force in Apex Legends.”

The company's shares are up 1.27% at 4.35p on Friday.

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