Ginx TV Hires Capital A to Explore Sale

Key insights

6 takeaways

01
London-based gaming and esports media company Ginx TV has hired the firm Capital A to explore a potential acquisition or new investment.
02
The company is pitching a strategy to investors that would retain current CEO Michiel Bakker and keep the existing staff of 21 full-time employees and 17+ outsourced roles intact.
03
Ginx TV generated approximately £2.2 million ($2.5 million USD) in revenue for the 2022 fiscal year.
04
Despite claims of profitability, the company reported financial losses of £162.9K ($194.3K) in 2020 and £263.1K ($313.9K) in 2021.
05
The company has invested approximately £9.99 million ($11.86 million USD) into its operations since 2010.
06
Ginx TV previously secured minority stakes from UK terrestrial TV networks Sky and ITV in 2016, following a 2015 equity crowdfunding campaign that raised £569.1K ($679K USD).

Summary

Ginx TV, a London-based media company specializing in gaming and esports content, has engaged the venture capital and private equity firm Capital A to explore a potential sale or new investment. The company is currently positioning itself to attract investors by highlighting its transition from a traditional television-focused entity to a more global, digital-first business. The proposed acquisition strategy emphasizes operational continuity, with the current CEO, Michiel Bakker, intending to remain in his role to oversee day-to-day operations alongside the existing staff of 21 full-time employees and over 17 outsourced personnel.

Financial data indicates that while the company has generated approximately £2.2 million ($2.5 million) in revenue for the 2022 fiscal year, it has faced recent losses, reporting a deficit of £263.1K ($313.9K) in 2021 and £162.9K ($194.3K) in 2020. Despite these figures, leadership maintains that the business is profitable and possesses a stable, recurring revenue model. The company has a history of external funding, including a 2015 equity crowdfunding campaign and significant minority investments from UK broadcasters Sky and ITV in 2016.

The search for new capital is intended to accelerate the company’s growth as it expands its production services for brands, publishers, and esports organizations. By retaining current leadership and staff, the firm aims to mitigate investor concerns regarding post-acquisition stability. The process remains ongoing, with management actively engaged in discussions to align the company’s capital structure with its long-term digital trajectory.