Motorsport Games Considering Strategic Alternatives
Motorsport Games Inc. (NASDAQ: MSGM) has announced that its Board of Directors has authorized management to consider strategic alternatives to maximize shareholder value, including a potential sale or merger of the Company. The company is also seeking funding to bring Le Mans Ultimate to PlayStation and Xbox consoles.
MSGM has undergone a restructuring, including headcount reductions in the US and UK, to reduce cash expenditure and improve efficiency. CEO Stephen Hood stated that these changes position the company to become more agile, focused, and efficient.
The company highlights recent successes, including the launch of Le Mans Ultimate, its role in F1 Arcade, and plans for a new innovative title. Hood mentioned growing inquiries from interested parties regarding strategic transactions, reflecting positive response to the company's turnaround efforts.
Motorsport Games Inc. (NASDAQ: MSGM) ha annunciato che il suo Consiglio di Amministrazione ha autorizzato la direzione a considerare alternative strategiche per massimizzare il valore per gli azionisti, incluso una potenziale vendita o fusione della Società. L'azienda sta anche cercando finanziamenti per portare Le Mans Ultimate su console PlayStation e Xbox.
MSGM ha subito una ristrutturazione, compresi riduzioni del personale negli Stati Uniti e nel Regno Unito, al fine di ridurre le spese e migliorare l'efficienza. Il CEO Stephen Hood ha dichiarato che queste modifiche pongono l'azienda in una posizione per diventare più agile, concentrata ed efficiente.
L'azienda evidenzia i recenti successi, compreso il lancio di Le Mans Ultimate, il suo ruolo in F1 Arcade e i piani per un nuovo titolo innovativo. Hood ha menzionato crescenti richieste da parte di soggetti interessati riguardo a transazioni strategiche, riflettendo una risposta positiva agli sforzi di recupero dell'azienda.
Motorsport Games Inc. (NASDAQ: MSGM) ha anunciado que su Junta Directiva ha autorizado a la dirección a considerar alternativas estratégicas para maximizar el valor para los accionistas, incluyendo una posible venta o fusión de la empresa. La compañía también está buscando financiación para llevar Le Mans Ultimate a las consolas PlayStation y Xbox.
MSGM ha pasado por una reestructuración, incluyendo reducciones de personal en EE. UU. y el Reino Unido, para reducir el gasto en efectivo y mejorar la eficiencia. El CEO Stephen Hood declaró que estos cambios posicionan a la empresa para volverse más ágil, enfocada y eficiente.
La empresa destaca los recientes éxitos, incluyendo el lanzamiento de Le Mans Ultimate, su papel en F1 Arcade y planes para un nuevo título innovador. Hood mencionó el aumento de solicitudes de partes interesadas sobre transacciones estratégicas, reflejando una respuesta positiva a los esfuerzos de recuperación de la empresa.
모터스포츠 게임스 Inc. (NASDAQ: MSGM)는 이사회가 경영진에게 주주 가치를 극대화하기 위한 전략적 대안 고려를 승인했다고 발표했습니다. 여기에는 회사의 잠재적 매각 또는 합병이 포함됩니다. 이 회사는 또한 르망 얼티밋을 PlayStation 및 Xbox 콘솔에 출시하기 위해 자금을 확보하려고 합니다.
MSGM은 현금 지출을 줄이고 효율성을 개선하기 위해 미국과 영국에서 인원 감축을 포함한 구조조정을 겪었습니다. CEO 스티븐 후드는 이러한 변화가 회사를 보다 민첩하고 집중적이며 효율적으로 만드는 데 도움을 준다고 밝혔습니다.
회사는 르망 얼티밋 출시, F1 아케이드에서의 역할, 그리고 새로운 혁신적인 타이틀에 대한 계획 등 최근의 성공을 강조합니다. 후드는 전략적 거래와 관련하여 관심 있는 당사자들로부터 증가하는 문의가 있다는 점을 언급하며, 이는 회사의 회생 노력에 대한 긍정적인 반응을 반영합니다.
Motorsport Games Inc. (NASDAQ: MSGM) a annoncé que son Conseil d'Administration a autorisé la direction à envisager des alternatives stratégiques afin de maximiser la valeur pour les actionnaires, y compris une éventuelle vente ou fusion de la Société. L'entreprise recherche également des financements pour apporter Le Mans Ultimate sur les consoles PlayStation et Xbox.
MSGM a subi une restructuration, incluant des réductions d'effectifs aux États-Unis et au Royaume-Uni, afin de réduire les dépenses et d'améliorer l'efficacité. Le CEO Stephen Hood a déclaré que ces changements positionnaient l'entreprise pour devenir plus agile, concentrée et efficace.
L'entreprise souligne ses récents succès, y compris le lancement de Le Mans Ultimate, son rôle dans F1 Arcade, et ses projets pour un nouveau titre innovant. Hood a mentionné les demandes croissantes des parties intéressées concernant des transactions stratégiques, reflétant une réponse positive aux efforts de redressement de l'entreprise.
Motorsport Games Inc. (NASDAQ: MSGM) hat angekündigt, dass der Vorstand die Geschäftsführung ermächtigt hat, strategische Alternativen zu prüfen, um den Unternehmenswert für die Aktionäre zu maximieren, einschließlich eines möglichen Verkaufs oder einer Fusion des Unternehmens. Das Unternehmen sucht außerdem nach Finanzierungen, um Le Mans Ultimate auf die Konsolen PlayStation und Xbox zu bringen.
MSGM hat eine Umstrukturierung durchlaufen, die auch Personalabbau in den USA und im Vereinigten Königreich umfasst, um die Bar-Ausgaben zu senken und die Effizienz zu steigern. CEO Stephen Hood erklärte, dass diese Veränderungen das Unternehmen in eine position bringen werden, die es agiler, fokussierter und effizienter macht.
Das Unternehmen hebt jüngste Erfolge hervor, darunter die Einführung von Le Mans Ultimate, seine Rolle in F1 Arcade und Pläne für einen neuen innovativen Titel. Hood erwähnte zunehmende Anfragen von interessierten Parteien zu strategischen Transaktionen, was eine positive Reaktion auf die Sanierungsbemühungen des Unternehmens widerspiegelt.
- Board authorization to explore strategic alternatives, including potential sale or merger
- Seeking funding to expand Le Mans Ultimate to PlayStation and Xbox consoles
- Successful launch of Le Mans Ultimate on PC platforms
- Restructuring efforts to reduce operating expenses and improve efficiency
- Growing inquiries from interested parties regarding strategic transactions
- Workforce reductions in the United States and United Kingdom
- Need for additional funding to pursue growth opportunities
- Ongoing cash flow optimization efforts indicate previous financial challenges
MIAMI, Oct. 04, 2024 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or “the Company”) is announcing that the Board of Directors has authorized management to consider strategic alternatives to maximize shareholder value, including a potential sale or merger of the Company. Management is also seeking funding that would allow it to deliver on viable opportunities including bringing Le Mans Ultimate to Sony PlayStation and Microsoft Xbox gaming consoles. Le Mans Ultimate is the official game of the FIA World Endurance Championship and the 24 Hours of Le Mans and was released on PC platforms in early access in February 2024.
Furthermore, the Company has undergone a restructuring including headcount reductions that have been undertaken in its business as part of an ongoing initiative to reduce cash expenditure and further improve efficiency. As part of the restructuring, the Company determined to implement additional measures to continue to bring down its year-over-year operating expense through a reduction of the Company’s workforce primarily in the United States and the United Kingdom.
“We have implemented a strategic restructuring to further streamline operations, reduce costs, and strengthen our financial foundations. These changes position us to become a more agile, focused, and efficient company – one that is conscious of our forthcoming operating requirements as well as within-reach growth opportunities,” commented Stephen Hood, CEO and President of Motorsport Games. “With our core talent and cutting-edge technology intact, we are excited about the future. The successful launch of Le Mans Ultimate, our pivotal role in F1 Arcade, and our plans for an innovative new title are clear signals of our commitment to driving the company forward.”
On the subject of strategic alternatives, Hood continued “Our board remains fully dedicated to delivering shareholder value and maximizing the business potential demonstrated by the recent and ongoing success of Le Mans Ultimate. Alongside this, our steadfast cost-cutting measures have optimized cash flow, allowing us to reverse prior over-expansion and operate more efficiently while investing in future growth. We continue to receive a growing number of inquiries from interested parties regarding strategic transactions, reflecting the positive response to our ongoing turnaround, not to mention growing confidence in our brand, vision and ability to deliver innovative games.”
There can be no assurances regarding the results or outcome of the consideration of strategic alternatives. The Company does not intend to comment further on this consideration of strategic alternatives process and will make further announcements in accordance with its ongoing disclosure obligations and pursuant to applicable laws and regulations.
About Motorsport Games:
Motorsport Games is a racing game developer, publisher and esports ecosystem provider of official motorsport racing series. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make racing games that are authentically close to reality. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series including the 24 Hours of Le Mans and the FIA World Endurance Championship, recently releasing Le Mans Ultimate in Early Access. Motorsport Games also owns the industry leading rFactor 2 and KartKraft simulation platforms. rFactor 2 also powers F1®️ Arcade through a partnership with Kindred Concepts. Additionally, Motorsport Games is an award-winning esports partner of choice for the 24 Hours of Le Mans, creating the renowned Le Mans Virtual Series. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure, and every race inspires.
For more information about Motorsport Games visit: www.motorsportgames.com.
Forward Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” and similar expressions also identify forward looking statements. Forward-looking statements include statements regarding estimated costs and savings related to the reduction of the Company’s workforce in the United States and the United Kingdom, the changes positioning the Company to become a more agile, focused, and efficient company – one that is conscious of our forthcoming operating requirements as well as within-reach growth opportunities; continuing to bring down the Company’s year-over-year operating expense through a reduction of the Company’s workforce primarily in the United States and the United Kingdom; the successful launch of Le Mans Ultimate, the Company’s pivotal role in F1 Arcade, and the Company’s plans for an innovative new title being clear signals of our commitment to driving the Company forward and the Company’s steadfast cost-cutting measures optimizing cash flow, allowing the Company to reverse prior over-expansion and operate more efficiently while investing in future growth; the receipt of a growing number of inquiries from interested parties regarding strategic transactions, reflecting the positive response to the Company’s ongoing turnaround, not to mention growing confidence in its brand, vision and ability to deliver innovative games.. These forward-looking statements involve risks and uncertainties, and there are important factors that could cause the estimated future impact of such costs and savings and the expected timing of such actions to differ materially from the forward-looking statements, including without limitation, the risk that such costs may be greater than expected and such savings may be lower than expected; that the reduction of the Company’s workforce in the United States and the United Kingdom may adversely affect the Company’s ability to attract and retain qualified personnel and that such reduction may be distracting to employees and management; that such reduction may negatively impact the Company’s business operations and reputation; and that such reduction may not generate the intended benefits to the extent or on the timeline as expected; that the Company may be unable to effect a strategic alternative and deliver shareholder value. Additional information regarding risks and uncertainties associated with the Company’s business and a discussion of some of the factors that may cause actual results to differ materially from the results expressed or implied by such forward-looking statements can be found in the Company’s SEC filings, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. These forward-looking statements are based on information as of the date hereof, and the Company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
Website and Social Media Disclosure
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):
| Websites | Social Media |
| motorsportgames.com | Twitter: @msportgames |
| Instagram: msportgames | |
| Facebook: Motorsport Games | |
| LinkedIn: Motorsport Games | |
The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.
Contacts
Investors:
Investors@motorsportgames.com
Media:
PR@motorsportgames.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c2be89cb-6d8d-40f8-885d-e3533fddce03
FAQ
What strategic alternatives is Motorsport Games (MSGM) considering?
What platforms is Le Mans Ultimate currently available on?
How is Motorsport Games (MSGM) reducing its operating expenses?
What recent successes has Motorsport Games (MSGM) highlighted?
