GROMW - Grom Social Enterprises Inc. to Further Expand Entertainment Offerings Through Gaming as it Enters Into Letter of Intent to Acquire Leading Gaming Company Arctic7 | Benzinga
BOCA RATON, Fla., March 07, 2024 (GLOBE NEWSWIRE) -- Grom Social Enterprises, Inc. (NASDAQ:GROM) ("Grom" or the "Company"), a media, technology, and entertainment company dedicated to family-friendly programming, web filtering technology and safe social media for kids, today announced that it has entered into a non-binding letter of intent to acquire Arctic7, Inc. (www.Arctic7.com), an emerging gaming industry service provider, in a 100% equity transaction. Grom's addition of Arctic7 could serve as an entry point for the company to secure a foothold in the growing and lucrative gaming industry and also explore opportunities to leverage gaming technology to serve the entertainment needs of today's kids and families in new, innovative ways. The acquisition of Arctic7 would complement Grom's existing entertainment offerings of safe, social media for kids and its growing catalog of original intellectual property from Curiosity Ink Media, which Grom acquired in 2021.
"The global gaming market represents a $185 billion market opportunity that continues to grow and innovate as represented by Disney's recent $1.5 billion investment in Epic Games which underscores the opportunity for content-gaming partnerships to deepen the overall consumer connection in their entertainment experiences," points out Grom's CEO, Darren Marks. "Grom welcomes the opportunity to bring Arctic7 into the Grom portfolio not only to further fuel Arctic7's growth in offering both gaming and virtual production capabilities but also so we can explore integrating Arctic7's expertise into our expanding entertainment ecosystem through content collaboration, cross-promotional opportunities, product licensing, brand partnerships, merchandising, interactive experiences, educational gaming initiatives, and much more."
Under the leadership of its CEO, Igor Efremov, Arctic7 has quickly established itself in the gaming industry and demonstrated impressive growth, achieving $7.9 million (unaudited) in its first fiscal year (FY23) and anticipates reaching approximately $14 million (unaudited) in FY24. Launched in 2022, Arctic7 has focused on becoming an industry leader and innovator by delivering exceptional experiences in ...