Benzinga | Sep 2, 2021 07:05AM EDT

Enthusiast Gaming Reports Purchase Of GameKnot For $2.75M In Cash, Shares, Deferred Payment

Enthusiast Gaming Holdings Inc. ("Enthusiast Gaming" or the "Company") (NASDAQ:EGLX) (TSX:EGLX), a media and content platform for video game and esports fans to connect and engage, announced that it has acquired GameKnot LLC, owner of chess fan community GameKnot.com ("GameKnot").

Founded in 2000, GameKnot is a news, strategy, and community site for casual and competitive chess players, offering multiple forms of competition via chess tournaments, leagues, and ladders. With free and premium subscription offerings, the site also provides resources including lessons and puzzles. GameKnot currently produces approximately 35 million monthly pageviews, of which approximately 80 percent are from registered and logged-in users.

"GameKnot has long served as a destination for chess enthusiasts around the world to play, learn, and connect," said Adrian Montgomery, CEO of Enthusiast Gaming. "This acquisition is in line with Enthusiast Gaming's buy and build strategy for gaming communities, responds to growing interest in chess from members of our Luminosity Gaming roster such as xQc and NickEh30, and capitalizes on recent viewership growth for chess on Twitch."

The Company acquired GameKnot LLC for US$2.75 million, consisting of: i) US$1.5 million paid in cash on closing, ii) US$0.75 million paid in common shares of the Company on closing, and iii) a deferred payment of US$0.5 million, payable six (6) months post-closing (in cash or common shares at the option of the Company).