Metaverse builder Infinite Reality has closed its deal to acquire esports and entertainment conglomerate ReKTGlobal, Inc. for $470 million, valuing the combined entity at $2.47 billion.
The acquisition marks Infinite Reality’s first investment in competitive esports and allows the company to expand its reach in Web3 and the metaverse with ReKTGlobal’s community.
ReKTGlobal has a number of investors and fans with sports-related backgrounds, including NBA center Rudy Gobert, NFL safety Landon Collins, and ATP player Taylor Fritz.
- The acquisition covers areas of business including social, gaming, and NFTs.
- It will also combine the offices of both companies.
An acquisition wasn’t always the plan for ReKTGlobal.
Earlier this year, the New York-based company was in talks to go public via a merger with Bull Horn Holdings Corp, a blank-check company backed by former NBA player Baron Davis.
The video game industry may have to reset itself, as game sales are expected to decline annually for the first time since 2015 due to a looming recession, per Ampere Analysis.
The decline follows a boost in the market due to COVID-related restrictions and the release of new consoles from tech giants Microsoft and Sony in 2020.
The global games and services market grew 26% from 2019 to 2021 and reached a record $191 billion. The market is expected to reach $188 billion in 2022, down 1.2% year-over-year.
However, the sector is projected to get back on track in 2023 with $195 billion in sales.