iCandy Interactive Limited (ASX: ICI) joins hand with the developer of Arcade X Platform, Emerge Gaming Ltd. The news sent the stock to edge up by 2.273% to trade at $0.090 on 21 March 2019 (2:36 PM AEST).
In the announcement dated 21 March 2019, mobile games developer iCandy announced that it has entered into a Global Collaboration and Distribution Agreement with ASX-listed Emerge Gaming Ltd to build and operate mobile games focused on EM1’s eSports platform.
Under the Agreement, iCandy and EM1 will partner to utilise content from iCandy and technology from EM1 to develop a mutually beneficial new mobile esports business. The strategic collaboration will also see the joint development of a new platform for mobile esports tournament, ‘iLeague’.
The report read that iLeague will include select mobile games from iCandy’s extensive mobile game portfolio which currently is in excess of 300 games and would be marketed to its network of over 350 million mobile gamers. This underscores the new and additional revenue-generation business opportunities for iCandy by monetising its content and its 350 million mobile gamers in line with its present monetisation strategy.
iCandy Non-Executive Chairman Kin-Wai Lau said, “The strategic collaboration with EM1 should significantly enhance the business objectives of iCandy which since listing have included the design, development, commercialisation and publishing of mobile interactive entertainment content.”
The iCandy management believes that partnership with EM1 will drive significant positive impact in terms of revenue and operational capability to iCandy in the near to mid-term. It is based on the fact that Emerge Gaming’s platform would provide iCandy with exposure to a wider group of mobile gaming audience that will resultantly accelerate the user interaction and number of users on iCandy’s game portfolio.
iLeague would be seen across an international market of mobile eSports that would reportedly present the tournament platform for its global audience offering ranking and participation rewards to gamers in the form of digital assets or physical merchandise.
The revenue has decided to be distributed equally between both iCandy and EM1; however, cost arrangements have not yet been determined. The iCandy Management expects to fund its portion of the cost via internally generated funds and release a separate cost associated agreement at a later date.
Further, the management expects its portion of the cost associated with this strategic collaboration to be marginally incremental on its existing operating cost as the strategic collaboration mainly involves licensing of game content from iCandy’s game portfolio.
On the bright side, the company firmly believes that the strategic collaboration with EM1 will allow the iCandy to harness the further potential of its extensive game content and technology via a very interactive mobile esports platform that could bring much excitement to the gamer community that the Company currently serves.
Over the past 12 months, ICI has witnessed a negative performance change of 16.19% despite the massive surge of 72.55% in the past three months.
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