Emerge Gaming shares surge on deal for "Netflix of Gaming"
Written on the 4 December 2018 by Matt Ogg
Shares in the eSports company Emerge Gaming (ASX: EM1) have risen 43 per cent this morning after it announced the execution of a global distribution agreement with Singapore-based Cloudzen Pte Ltd, putting it in the system of what has been dubbed the "Netflix of Gaming".
The partnership allows the group to use its intellectual property for "GameCloud", a portal that gives gamers instant access to hundreds of AAA-rated 3D graphic games and live streaming on mobile devices without the need to download the game.
Through what Perth-based Emerge has described as a "revolutionary digital platform", this allows gamers to play at any time from handheld devices and smart TVs, with multiplayer gaming, video streaming and social networking.
"Our strategic partnership with Cloudzen and its revolutionary GameCloud platform offers Emerge Gaming a significant opportunity to push the boundaries of cloud gaming, and accelerate revenue growth across a number of new territories in the near term," says Emerge Gaming chief executive officer Greg Stevens.
"Once you experience game streaming, you will not go back to traditional gaming. Our partnership with Emerge Gaming will allow us to continue the disruption of the online gaming community, like the Netflix and Spotify of the gaming world," adds Cloudzen founder and CEO Robin Tan.
The Global Distribution Agreement will see Emerge Gaming enter a number of first world markets to promote its Arcade X and GameCloud's technology. This includes an initial rollout into South America, Africa, India, Australia, United States of America and the United Kingdom.
During the term of the two-year agreement, Cloudzen grants Emerge Gaming an exclusive licence to use GameCloud. Emerge Gaming will distribute the GameCloud into select territories with users paying a monthly subscription fee.
The strategic partnership provides Emerge Gaming with exposure to a wider range of mobile gamers to increase users on both platforms and solidify its revenue generating capabilities.
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Business News Australia
Author: Matt Ogg