Nine global esports organisations are now valued at more than US$100 million, according to a report released by US business magazine Forbes.
The list of the world’s 12 most valuable esports companies is topped by Cloud9 with an eye-watering valuation of US$310 million. The organisation, which is owned by Jack and Paullie Etienne, currently boasts 11 teams across a range of titles, and recently announced that it would be opening an LA training base after raising US$50 million in a Series B funding round.
Team SoloMid and Team Liquid complete the top three with respective valuations of US$250 million and US$200 million. The other companies estimated to be worth over US$100 million are Echo Fox, OpTic Gaming, Fnatic, Gen.G Esports, G2 Esports and Immortals.
Forbes says that player costs tend to exhaust half of an esports company’s operating budget, with the vast majority of gaming organisations still making losses as they continue to spend money to build their rosters and brands. Forbes added that Team SoloMid is the only esports company on its list known to be cash-flow positive.
With the popularity of esports on the rise, the cost of entering individual teams into gaming tournaments and leagues has continued to grow more expensive. League of Legends franchises are now being valued at US$50 million by bankers, while the Overwatch League was believed to be demanding between US$60 million and US$80 million from prospective expansion franchises for its second season.
Esports has also been making significant strides into the mainstream in recent years, with various traditional sports leagues and teams launching their own competitive gaming divisions, while broadcasting giant ESPN in the US now shows the Overwatch League during primetime on its linear channels.
The sustained growth of competitive gaming is also reflected in a recent report by esports intelligence agency Newzoo, which projects that esports’ global fanbase will reach 165 million in 2018, while its revenues will grow 38 per cent this year, to US$906 million, and reach US$1.65 billion by 2021.
Nine global esports organisations are now valued at more than US$100 million, according to a report released by US business magazine Forbes.
The list of the world’s 12 most valuable esports companies is topped by Cloud9 with an eye-watering valuation of US$310 million. The organisation, which is owned by Jack and Paullie Etienne, currently boasts 11 teams across a range of titles, and recently announced that it would be opening an LA training base after raising US$50 million in a Series B funding round.
Team SoloMid and Team Liquid complete the top three with respective valuations of US$250 million and US$200 million. The other companies estimated to be worth over US$100 million are Echo Fox, OpTic Gaming, Fnatic, Gen.G Esports, G2 Esports and Immortals.
Forbes says that player costs tend to exhaust half of an esports company’s operating budget, with the vast majority of gaming organisations still making losses as they continue to spend money to build their rosters and brands. Forbes added that Team SoloMid is the only esports company on its list known to be cash-flow positive.
With the popularity of esports on the rise, the cost of entering individual teams into gaming tournaments and leagues has continued to grow more expensive. League of Legends franchises are now being valued at US$50 million by bankers, while the Overwatch League was believed to be demanding between US$60 million and US$80 million from prospective expansion franchises for its second season.
Esports has also been making significant strides into the mainstream in recent years, with various traditional sports leagues and teams launching their own competitive gaming divisions, while broadcasting giant ESPN in the US now shows the Overwatch League during primetime on its linear channels.
The sustained growth of competitive gaming is also reflected in a recent report by esports intelligence agency Newzoo, which projects that esports’ global fanbase will reach 165 million in 2018, while its revenues will grow 38 per cent this year, to US$906 million, and reach US$1.65 billion by 2021.
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