What happened to Emerge Gaming’s share price?
Emerge Gaming Limited (ASX:EM1) shares are up 42% at the time of writing, to 2.7 cents per share.
Why did Emerge Gaming shares push higher?
Emerge Gaming― a leading eSports and casual gaming tournament company ― signed a memorandum of understanding (MoU) with US-based Digital Circus Media (Digital Circus). The MoU provides a pathway for the company to launch its products, specifically its GameCloud game streaming technology, throughout North America.
GameCloud is regarded as the Netflix of Gaming. It offers simple and instant streaming of hundreds of high-quality 3D games for mobile devices. In this case, among initiatives with other companies, Emerge Gaming has engaged Digital Circus to develop AAA interactive gaming experiences for the GameCloud platform to target the US market.
Digital Circus is headed by David Wheeler ― an award-winning designer of video games and interactive movies. His leadership at Electronic Arts, Vivendi and Universal Studios generated more than US$2 billion in revenue from multiple games, such as Medal of Honor, Ghostbusters and The Bourne Conspiracy.
The share price skyrocketed on the positive news.
What’s next for Emerge Gaming?
Today’s share price action looks good, with shareholders laughing all the way to the bank:
Emerge Gaming’s share price has been ignored for much of the past year, however. But the company has been kicking goals over the past couple of months. In early February, it announced its plans to distribute the revolutionary GameCloud game streaming technology. Then in March, EM1 announced it would promote its tournaments to over 350 million subscribers via a partnership with iCandy Interactive Limited (ASX:ICI).
Emerge Gaming is now focused on adding Digital Circus content, which can be streamed on GameCloud for US players. Digital Circus has also recognised the opportunity of the eSports content and is looking to capitalise on its fast-growing audience.
Emerge Gaming CEO Gregory Stevens told the market today:
This collaboration is a key component to opening up the U.S. market for the introduction of the GameCloud technology and opening up new avenues for mobile eSports in North America. We are very excited to be in partnership with David and Digital Circus.
David Wheeler also shared his thoughts on the collaboration:
We are very excited to be partnering with Emerge Gaming and Cloudzen. They have a sharp focus on the future of gaming and interactive media and that future is now!
The financial impact of the agreement isn’t determined yet. The focus is on targeting content partners at this time. That said, if the companies can agree on and develop a clear pathway to revenue in the months ahead, shareholders could benefit nicely upon the global rollout of GameCloud.
Note: If you enjoy our analysis and want to become a more informed trader,sign up for all our content for FREE below. Members rave about our comprehensive research on the live trading blog, which tracks our positions and profit and loss in real time for FREE. We also offer members an in-depth trading course and daily hot stock news, also for FREE.
To your first million,
The Trading For Millions Team
PS: We don’t own shares in the above company and aren’t paid by companies to write analysis on Trading For Millions ― it’s 100% independent. We also aren’t licensed to provide financial advice on the blog; we merely write it for enjoyment. You should consider your own financial position and conduct research on any company detailed on Trading For Millions.
Sign up for all our content and analysis for FREE below.