The Mobile Streams Plc (LON: MOS) share price surged 8.51% after announcing that it had acquired LiveScores Services and was now the sole owner of the I-gaming service.
The company had been operating the LiveScores service under a revenue share agreement with Quanta Media Group (‘Quanta’), with the deal now being scrapped after today’s announcement.
The LiveScores service was developed by Tim Scoffham in partnership with Quanta, with the service being launched in Mexico on 26 July 2021, as reported by MOS.
Tim Scoffham will be joining Mobile Streams to lead the expansion of the LiveScores service to other countries. MOS has already signed four B2B agreements to bring the service to India, Italy, Africa and Turkey.
Investors cheered today’s announcement that expands Mobile Streams’ portfolio of services, as evidenced by the rally in MOS shares.
Mobile Streams will pay Tim Scoffham £125,000 as the initial consideration for the acquisition, with the payment being in the form of MOS shares. The shares will have a12 month lockup period.
MOS also agreed to pay a further £75,000 in shares, split into three equal payments over time. All payments will have a 12 month lockup period, aligning Tim’s interests with the company’s long term plans.
The shares paid to Tim are valued at 0.423p, which is the VWAP value of MOS shares over the three months to 9 February 2022, which is why MOS shares rallied despite the lower price offered to Tim.
This is the second significant announcement made by Mobile Streams this month following its partnership with Vodafone, which led to the launch of its services in India.
Mobile Streams will be offering new esports, gaming and Metaverse services via its proprietary app available on the Google play store to Vodafone’s 273 million Indian customers.
The company is also talking with Jio Networks to get access to over 420 million subscribers. In addition, the gaming app is available on the Google Play store, given that most Indian smartphone users have android phones.
Tim Scoffham said: “I am delighted to be joining Mobile Streams to lead the global LiveScores business and help grow the wider business. I think there are enormous opportunities for MOS. The company is in an amazing position, and I look ford to helping them accelerate their already impressive growth.”
Mark Epstein, Mobile Streams’ CEO, said: “We are extremely pleased to have someone with Tim’s ability on board. He has great experience in the I-gaming sector, and I look forward to us working together. His significant abilities will be a big help as we continue growing around the world and expanding our offering.”
Mobile Streams’ prospects appear pretty promising, making it an attractive investment target. However, I would wait for its next earnings report before buying shares, my personal preference.
*This is not investment advice. Always do your due diligence before making investment decisions.
Mobile Streams share price.
Mobile Streams shares surged 8.51% to trade at 0.51p, rising from Thursday’s closing price of 0.47p.
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