Cable TV is on its last legs.

The new giants? Streaming and esports, multiplayer video games played competitively by professional gamers for spectators.

Here’s the scoop: Gen Z and Gen Alpha are all in on gaming, folks. We’re talking 22% and 19% of their free time is spent either playing or watching people playing video games!

That’s right, gaming’s not just big; it’s colossal.

Professional sports have an aging fan problem. Take a peek at the median ages¹:

• • • 2020 NFL Super Bowl – 49.1 years
    • MLB in 2017 – 57 years
    • NBA – 42 years
    • Soccer – 39 years

The younger generation are no longer watching the Cowboys or the Lakers, they are watching their favorite esports teams playing online! Many of these sporting powerhouses such as the likes of the Kraft Group and Jerry Jones have caught on to the trend and are all in on esports.

Esports Is The Hidden Gem In The Investment World

Think NHL-size valuations without the ice. One esports team, Cloud9’s rocking a $350 million² tag. Yes, you heard that right. Esports teams are now as big as major league hockey squads.

Now, who is the new LeBron James in this arena? Streamers like Adin Ross. Kids are ditching basketball icons for gaming legends.
Ross? A cool $50 million net worth³. And his earnings? $10 million a year from streaming. Another popular streamer Félix Lengyel, known as xQc, matches traditional athletes’ contracts and signed a $100 million deal with streaming platform Kick⁴.

Esports and streaming? That’s where the money’s moving. Cable’s dying, and this shift is your ticket to the next potential investment frontier.

How Esports Teams Cash In: A Quick Dive

Esports is skyrocketing, but ever wonder how these digital dynamos make their money? Here’s the breakdown:

• • • Sponsorships and Partnerships: The big bucks. Brands pay top dollar to get their logos and products in front of millions of engaged fans. From energy drinks to tech giants, everyone wants a piece of the action.
    • Media Rights: Just like traditional sports, broadcasting esports competitions is lucrative. Platforms pay to stream these battles to a global audience.
    • Merchandise Sales: Fans love to show their loyalty. Jerseys, hats, mouse pads—you name it, if it’s got a team logo, it sells.
    • Prize Money: Winning isn’t just glory; it’s cash. Top teams and players are raking in millions from tournament victories around the globe.
    • Content Creation: Streams, YouTube videos, exclusive content—fans lap it up. And with ad revenue and donations, it’s a steady stream of income.
    • Skins and Fan Support: Special editions, in-game items (virtual outfits and gear), or just straight-up donations. Fans are eager to support their heroes directly.
    • Event Hosting and Ticket Sales: When these teams throw down in live events, tickets can sell out in seconds. And let’s not forget the concessions and merchandise on site.

Each point is a revenue stream, flowing into an ocean of opportunity. Esports isn’t just gaming; it’s a financial powerhouse.

Ready to dive into the esports goldmine?

OverActive Media (TSXV:OAM) (OTC:OAMCF): The Game-Changer in Esports and Entertainment

What’s hotter than an esports team?

How about a media and esports entertainment conglomerate that’s not just playing the game but owning it?

Meet OverActive Media (TSXV:OAM) (OTC:OAMCF), Canada’s premier esports titan, commanding the arena with not one, but multiple elite teams under its banner that has the potential to become the Dallas Cowboys of esports.

For investors looking for growth potential, OverActive Media (TSXV:OAM) (OTC:OAMCF) presents a compelling opportunity, blending strategic acquisitions, strong partnerships, and innovative developments.

(We will go into more detail below.)
OverActive Media (TSXV:OAM) (OTC:OAMCF) is expanding fast without wasting money. Instead of spending millions to sign big-name streamers with the hopes of making millions, OverActive Media owns and manages the Toronto Ultra and MAD Lions and just announced that they are joining forces with two of the most popular esports teams KOI and Movistar Riders targeting the Europe, Middle East and Africa (EMEA) esports scene.

These deals are game changers for OverActive Media (TSXV:OAM) (OTC:OAMCF), which now boasts the highest viewership, the highest total engagement, with an audience over 100 million across the games with the biggest potential (League of Legends, VALORANT, CS2 and CDL) with a roster of additional teams to round up the market.

Telefónica, which has prominently backed Movistar Riders as a key sponsor since 2017¹¹ and became a minority owner in 2022, just signed a multi-year extension – marking OverActive Media’s (TSXV:OAM) (OTC:OAMCF) largest partnership to date; once the transaction is closed in 2024, Telefonica will become OAM’s largest sponsor.

The deal gives Telefónica naming rights, a notable brand presence on team uniforms and merchandise, along with involvement in content creation and promotional activities.

These aren’t just teams; they’re revenue generators, poised to add $10 to $12 million annually.

Now enter Ibai Llanos. A name that rings loud in streaming. From League of Legends (All-time most popular PC game in history with 141 million monthly active players¹²) to a variety powerhouse.

His big play? Forming KOI with Gerard Piqué.

Gerard Piqué, former FC Barcelona soccer legend brings his own flair. His King’s Soccer League (not video game soccer) isn’t just a league; it’s a viewership giant. It’s outshining US sports leagues in numbers.

Ibai’s generated a following of 9.9M on Instagram, and 15.3M on Twitch¹³. He also holds the Twitch World Record after drawing in 3.4M fans while live streaming a single boxing match.¹⁴

Meanwhile, Gerard boasts 23M followers on Instagram and 20.7M on X.com (formerly Twitter).

Since the deal, OverActive Media’s (TSXV:OAM) (OTC:OAMCF) audience has exploded with over 100,000,000 accumulated viewers now tuning in to watch them stream and compete in tournaments.

On January 13, the newly formed Mad Lions KOI team played its third game in the League of Legends EMEA Championship (LEC) and reached 741,000 viewers – the highest for a regular season match in LEC history.¹⁵ Meanwhile, NHL games are averaging 471,000 viewers.¹⁶

Ibai streamed the event on Twitch and attracted over 6 million viewers.¹⁷

This is on top of its own Content Creator Academy^18,19 a newly established platform with a roster of 20 diverse influencers with a combined reach of over 15 million all representing OAM’s brands.

Why are these strategic deals and teams under OverActive Media’s (TSXV:OAM) (OTC:OAMCF) banner catapulting them far ahead of the competition?

Because their revenue streams are diverse and robust.

For Q3 2023,²⁰ OverActive Media (TSXV:OAM) (OTC:OAMCF) generated C$6M in revenue showcasing a balanced revenue model:

• • • 53.8% from team revenues, which include league revenue share and prize money.
    • 46.2% from business revenues, comprising of sponsorships, merchandise and event-related income (both broadcast and in-person)

Also adding Ibai Llanos and Gerard Piqué was strategic. It’s not just about their fame and popularity, it’s about blending esports with people coming from traditional sports and entertainment.

This approach aims to engage fans in new ways and boost revenue which we believe OverActive Media’s (TSXV:OAM) (OTC:OAMCF) is crafting a new model for success in esports.

Skins: The $50 Billion Opportunity You’ve Probably Never Heard Of

So what’s a skin?

A skin is a digital item players buy to customize their character’s appearance, much like choosing a sports jersey for a digital avatar.

They’re game-changers. Like how Tiger Woods’ iconic attire inspires golf fans, skins in gaming let players stand out. They’re more than just digital outfits; they’re a player’s mark of style and sometimes even skill.

Skins go beyond aesthetics. They’re a mix of identity, prestige, and sometimes, an edge in gameplay.

The resale market for skins are massive in games such as CSGO where a single skin can sell for upwards of $1.5M!²¹

This is where OverActive Media (TSXV:OAM) (OTC:OAMCF) steps in, leading the charge since 2020 with one of Overactive’s teams, the Toronto Ultra having its skins being sold in Call of Duty, which has 210 million monthly active players!²²

But they’re pushing further. Come February 2024, the Movistar Koi team skins are set to launch on Valorant, with 30 million monthly active players.²³ A prestige only available to the select few licensed teams.

This isn’t just big news; it could potentially be big revenue.

Imagine equipping your game character with your favorite team’s skin. It’s akin to wearing Tiger Woods’ red shirt, but digitally. This connection between fans and esports stars is more than merchandising—it’s building a community.

The skin market is vast, hitting a massive $50 billion. That’s twice the size of golf merchandise sales at $25 billion annually²⁴.

With Call of Duty’s in-game store revenue jumping from $1.01 billion to $1.29 billion within a year, the trajectory is clear. Skins aren’t just profitable; they’re reshaping how games monetize.

Adding to this, a staggering 93% of Gen Alpha and 91% of Gen Z have spent money on in-game purchases in the last six months of 2023²⁵, primarily on gear, playable characters, and in-game currency, highlighting a significant trend in digital spending among younger gamers.

For investors, this spells opportunity.

OverActive Media’s (TSXV:OAM) (OTC:OAMCF) expansion into team skins taps into a booming market, driving fan engagement and opening new revenue streams.
Skins aren’t just the future of gaming fashion; they’re a strategic asset in the esports economy.

Here Are The Key Takeaways From OverActive Media’s (TSXV:OAM) (OTC:OAMCF) Q3 2023 Financials

• • • Total Revenues: Reached C$6 million, up 3.5% with a C$200,000 year-over-year (YoY) increase, thanks to higher event revenues.
    • Adjusted EBITDA: Climbed to C$800,000, improving by C$1.2 million YoY.
    • Operating Expenses: Fell by 19.2% or C$1.3 million YoY, mainly from lower corporate payroll and team operating costs.

Not included in these figures are the additional financial boosts post-Q3:

• • • The C$16 million gained from exiting the Overwatch League.
    • An anticipated $10-$12 million in revenue from acquiring KOI and Movistar Riders.

Looking ahead to 2024:

• • • OverActive Media (TSXV:OAM) (OTC:OAMCF) stands strong with no debt and a cash reserve of C$9.7 million.
    • The company maintains a robust share structure, with insiders holding 39% of shares.

OverActive Media’s All-Star Leadership Team

Leading the way for OverActive Media (TSXV:OAM) (OTC:OAMCF) is a team of industry-leading talent with a vision for the future of digital entertainment. Putting their money where their mouth is, long-time major shareholders own 39% of OverActive Media’s shares.

This team is poised to continue OverActive Media’s trajectory as a powerhouse in the rapidly growing esports sector, with the following brain trust leading the way:

Adam AdamouCEO

As the CEO of OverActive Media (TSXV:OAM) (OTC:OAMCF), Adamou has been instrumental in shaping the company’s expansive strategy, marked by key acquisitions and growth initiatives across major esports hubs like Toronto, Madrid, and Berlin. With his rich experience, including leading roles at OV2 Securities Inc. and Echelon Wealth Partners, Adamou’s leadership has been a cornerstone of OverActive Media’s evolution. His strategic acumen, honed through years of corporate finance and investment banking, has been pivotal in the ownership and operation of prominent esports teams, positioning him as a vanguard in the competitive esports landscape.

Tyler KeenanSenior Vice-President, Partnerships & Revenue

Keenan is renowned for his innovative leadership in the sports and entertainment industry, with a career spanning two decades. At OverActive Media (TSXV:OAM) (OTC:OAMCF), he is the SVP of Partnerships & Revenue, where he excels in cultivating growth and establishing meaningful partnerships. His tenure at Nike Canada as the Canada Brand Director for Nike Golf is a testament to his ability to shape a brand’s narrative and connect with audiences. With a history as a collegiate athlete, Keenan’s passion for sports underpins his strategic approach to commercialization and partnership development, ensuring OverActive Media’s place at the forefront of engaging the new generation of esports enthusiasts.

Rikesh ShahCFO

Shah brings a wealth of financial expertise to his role as CFO at OverActive Media (TSXV:OAM) (OTC:OAMCF), having previously shaped the company’s fiscal strategies, restructured the company for growth and profitability, successfully launched the public listing, and to date has completed three acquisitions for the organization. His financial acumen was honed at the Canadian Olympic Committee, where he led as Executive Director of Finance and delivered on multi-million dollar and multi-year sponsorship agreements, financial plans with eight-figure surpluses, along with Canada’s best-ever Olympic podium performances. Shah’s financial stewardship is underpinned by nearly two decades as a CPA.

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