QYOU Media has successfully completed its acquisition of a majority ownership stake in Maxamtech Digital Ventures, a six year old India based venture creating technology and games for the mobile gaming industry. QYOU Media has initially purchased a 51 per cent stake of the issued and outstanding shares in the Maxamtech business giving it majority control over the enterprise.The purchase price has not been disclosed but the parties have agreed on terms for purchase of the remaining 49 per cent based upon a multiple of EBITDA over the calendar years 2023, 2024 and 2025. The acquisition continues the recent push by QYOU Media and The Q India to leverage its large and growing audience reach to over 125 million young Indians weekly by ramping up its portfolio of direct-to-consumer products in 2023.
The mobile gaming business in India has experienced an unprecedented rise in recent years. KPMG has reported that there are 420 million online gamers in India, making it second only to China. This trajectory is being driven by the growing younger population that finds itself with more disposable income combined with a rapid rise in the use of smartphones. Revenue in the mobile gaming business is expected to reach over $5 billion USD in 2025, largely fueled by discovery and adoption of casual and free to play games, a specialty of Maxamtech’s Gaming 360 platform.
Maxamtech Digital Ventures co-founder Xerxes Mullan commented, “We have been conceptualizing and working with the team at Q India since the signing of the term sheet so we are hitting the ground running. There is such a massive opportunity for user growth and revenue generation in the mobile gaming space in India and we feel like the timing could not be better for us to harness the audience reach of the various Q distribution channels with our proven ability to generate sticky game play for casual mobile gamers. It is great to now be fully started and we expect to have products available in the market in Q1 2023″.
QYOU Media CEO and co-founder Curt Marvis, added, “As we continue to diversify the products we offer to our ever growing audience of young Indians, it was clear that casual mobile gaming was at the top of the list of needed products. We know that for brands and users alike, the growing attraction and engagement of mobile gaming is at the center of their universe. We are firm believers that the sky’s the limit to the extent we can leverage the synergies and growth opportunities in the Maxamtech business with our current channel and influencer driven capabilities.”
In addition to the closing of the Maxamtech acquisition, the Company also disclosed that further to the details of its press release dated 17November 2022, it paid a cash commission of $240,288 and issued an aggregate of 1,922,304 compensation options (each a “Compensation Option”) to Clarus Securities Inc., who acted as sole agent and bookrunner on behalf of a syndicate, in connection with the “best-efforts” public offering of units of the Company (each a “Unit”) that closed on 17November 2022. Each Compensation Option entitles the holder to acquire one Unit at an exercise price of $0.125 until 17November 2024. In connection with the Company’s concurrent private placement of 1,840,000 Units, it paid an aggregate of $7,500 and issued compensation options to acquire up to 60,000 Units as finder’s fees to a certain person who assisted the Company.
On 9January 2023, the Company issued 3,750,000 stock options at an exercise price of $0.125 and expiring 9January 2028 and 1,875,000 restricted share units under standard vesting terms as additional compensation to certain company executives and board members for services provided in 2022.