Multi-platform media company Engine Gaming & Media has announced that assets from its subsidiary UMG Gaming will be sold to esports community aggregator Harena Data.
In addition to the transfer of assets, UMG will supply various technology services to Harena Data following the closing of the transaction.
Harena Data will own the UMG Online platform, which hosts daily tournaments and matches for competitive esports players. Moreover, the company will be responsible for the studio and media properties under UMG including its social channels.
In the release, Lou Schwartz, CEO of Engine Gaming & Media, explained that the company has begun a comprehensive portfolio review to identify cost savings opportunities that help position the company for continued sustainable growth. Whilst financial figures of the deal were not disclosed, the transition of UMG is supposedly set to reduce Engine’s cash expenditure by approximately $16m (~£13m) on a year-over-year basis.
Schwartz commented: “This is part of an overall effort to relieve the company of the more significant cash expenditures necessary to support B2C gaming businesses, particularly as we enter a far more difficult macroeconomic environment.
“With this transaction, the sale of Eden Games, and other cost savings initiatives we have implemented or will implement in the near term, we position the company to achieve its goal of run rate breakeven in 2023.”
According to the release, Engine will maintain close partnerships with many of UMG’s existing clients – most notably Microsoft, Electronic Arts, and Riot Games – through relationships with its other subsidiaries.
Recently, Engine joined forces with investor relations solutions company MZ Group to develop a capital markets strategy designed to increase the company’s visibility throughout the investment community.
