Danish esports team Astralis continues to make some incredibly massive moves. This month, they’re making a move to go public. They’re going to have an Initial Public Offering (IPO). If you’ve ever wanted to own stock in an esports team, you don’t have to be rich, or a pro to do so.
This is a seriously major move. I’m shocked that it’s taken this long for a team to do it. Many esports teams have stock options for people who have invested, as well as team members I imagine. But this? This is ground-breaking.
Raising Serious Kroner
For those of us who aren’t American, Kroner is a Norwegian currency. Astralis is aiming to raise 125-150 million kroner ($18-$22 million) and have priced the shares at 8.95 kroner ($1.32). Are they worth investing in?
Well, Astralis is the No. 1 ranked CS:GO team in the world, so I’d say so. Astralis has made millions from their esports ventures so far and has paired up with some major-league brands. Audi and Logitech? They’re on board. Astralis Group is known for its work in League of Legends, FIFA and CS:GO.
Nikolaj Nyholm, Astralis Group’s CEO points out that they have around 8 million already “from a range of European and Asian investors”. This is the first IPO of its kind, so it’s no big shock that people are jumping on board. Heck, I might even try and throw some money into the pot. Finally, a stock I know a little something about.
Astralis IPO: The Future of Esports
Esports is constantly growing and changing. More and more money is being made every year around the world. The Astralis IPO is again, a first of its kind. They’re ahead of all their competition. I can’t help but wonder how the stock will do.
What’s more, esports isn’t just for the most hardcore gamers anymore. It’s reaching new audiences every week. Gaming analytics firm Newzoo stated that esports is scheduled to be a $1.1 billion business by the end of 2019, and that’s massive.
Consider that Astralis isn’t even the most valuable esports squad either. There’s the No. 1, Cloud9 at $400 million per Forbes. FaZe Clan is growing in popularity and net worth, as well. If one of these other teams were also to dive in and offer an IPO, this could be a new way for esports fans to invest and try to make some money.
Is this another form of gambling? I mean, possibly? How do we put value on esports stock? Is it solely on how much money they make from winning? Does a team’s winnings, the money that goes right to the team count towards the net worth of the company? This is something interesting to think about.
This IPO will be available on Nasdaq’s Copenhagen exchange for small companies on December 9. The Astralis CEO also had this to say:
“We believe that the foundation of some of the most valuable and iconic brands in 10 years’ time is being set today”
What do you think? Would you invest money into your favorite team? Or would you rather invest in teams that are getting wins (if your favorite team isn’t a world-beater)? I can’t help but wonder where the invested money would go. Would it help teams build bigger, better teams? I’m not a financial expert, but I’m certainly curious to how this is all going to shake down.