Best-performing tech stocks in December 2024

The global esports market is poised for explosive growth, with a recent report from Arizton Advisory & Intelligence projecting it will exceed $5 billion by 2029, fueled by a compound annual growth rate (CAGR) of 17.48%.

To put this in perspective, industries like American football and global music show significantly lower CAGRs of 6.9% and 7.8%, respectively, the report says.

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However, regulatory complexities, emerging technologies, and strategic market shifts are shaping the industry’s future. In dialogue with Benzinga, Arizton’s Associate Consultant, Abhiyank Verma, shared insights into the challenges and opportunities ahead for esports investors and stakeholders.

Navigating The Challenges Of The Esports Industry

“Regulatory uncertainties remain a major challenge for esports companies,” said Verma. He added that governance frameworks vary across regions, creating a fragmented landscape.

"For instance, South Korea leads the way with structured governance through the Korea Esports Association (KeSPA), ensuring fairness and player welfare," Verma shared.

On the other hand, regions like North America and Southeast Asia rely on fragmented or industry-driven policies, making it difficult to manage player rights and advertising regulations.

Other regions face their own hurdles. "Saudi Arabia enforces strict content controls under Vision 2030, and China imposes tight restrictions on gaming time and content," Verma noted, adding that these measures complicate global operations.

Emerging Technologies Shaping The Future Of Esports

The adoption of cutting-edge technologies like Augmented Reality (AR) and Virtual Reality (VR) is revolutionizing the esports experience.

As Verma puts it, "AR enhances real-world environments by overlaying digital elements, enriching gameplay with real-time visuals and data."

VR, on the other hand, transports players to fully virtual worlds, providing “unparalleled inmmersion.” Together, these technologies are unlocking new possibilities, from mixed-reality tournaments to enhanced spectator experiences.

The global impact of AR and VR is already evident. For instance, in the U.S., initiatives like Golden Gloves VR are blending fitness with competitive gaming, while Canada's Dark Slope advances VR-based experiences. The United ArabE is leveraging these innovations to bolster its economy, with Dubai's VR Park projected to add $4.1 billion by 2030. Meanwhile, China's Meta-Tencent partnership showcases the growing role of immersive technology in competitive gaming.

"These technologies are driving trends that expand audiences and unlock economic opportunities," Verma emphasized, underscoring their transformative potential for the esports ecosystem.

Advice For Investors Eyeing Esports Growth

For investors looking to tap into this booming market, Verma stressed the importance of diversification, strategic partnerships, and emerging markets.

• Revenue Diversification: "Traditional revenue sources such as sponsorships and tournament winnings remain vital," Verma explained, but esports organizations are branching out. He pointed to in-game purchases, virtual goods, subscription services, and digital collectibles as emerging revenue streams that cater to fans’ demand for exclusive content.
• Strategic Partnerships: Collaborations with game developers and streaming platforms are essential. "Partnerships with companies like Tencent Holdings ADR‘s Riot Games, Blizzard, and Microsoft Corp.‘s Activision ensure a steady supply of new titles and competitive events," said Verma. Streaming platforms like Twitch, Alphabet Inc‘s YouTube, and Meta Platforms Inc‘s Facebook Gaming also play a critical role in expanding esports' reach and community engagement.
• Emerging Markets: Regions like Southeast Asia, India, and the Middle East are experiencing rapid growth due to improved internet infrastructure and smartphone adoption. "With the rise of fan engagement technologies, including VR, AR, and interactive live-streaming, esports organizations are creating new ways for fans to interact with content."

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Photo by Florian Olivo on Unsplash.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Newly appointed government efficiency co-czar Vivek Ramaswamy says he will scrutinize a loan issued by the Biden administration to electric vehicle (EV) manufacturer Rivian, a rival of Tesla Inc. .

What Happened: Ramaswamy, a biotech entrepreneur, will lead the Department of Government Efficiency (DOGE) alongside Tesla CEO Elon Musk following President-elect Donald Trump‘s inauguration.

Ramaswamy recently criticized President Joe Biden administration for approving a $6.6 billion loan to Rivian for a Georgia plant construction, which has since been suspended. He questioned the high cost per job created by this loan and suggested it could be a political move against Musk and Tesla, reports Fortune.

The Department of Energy defended the loan, highlighting their Advanced Technology Vehicles Manufacturing program’s role in reinforcing America’s global automotive standing. They pointed to the successful loan granted to Tesla in 2010 as evidence of the program’s efficacy.

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Ramaswamy’s critique of the loan comes amid concerns about Rivian’s financial stability. Despite its reputation as a high-end EV brand with a growing lineup of award-winning vehicles, Rivian has yet to turn a profit.

The company is currently working to streamline its production process and aims to generate a gross profit in the current fourth quarter.

Why It Matters: Ramaswamy’s scrutiny of the loan to Rivian underscores the ongoing debate about government involvement in the EV market.

The loan’s approval has raised questions about the government’s role in supporting emerging industries and the potential political motivations behind such decisions.

This scrutiny comes at a critical time for Rivian, which is working to establish its profitability amidst growing competition in the EV market.

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Amazon.com, Inc.  founder Jeff Bezos lives a private life in an elite neighborhood where he rarely shows his face.

What To Know: Bezos is a resident of Hunts Point, a wealthy neighborhood just outside of Seattle. He purchased a $37.5 million property in the neighborhood in 2019, as well as three other nearby homes for his staff, according to a Business Insider report.

Every year, residents of Hunts Point gather to plant trees, pull weeds and pick up trash around the neighborhood, but Bezos never shows up. 

“I’ve seen a billionaire pick up trash on Cleanup Day. Not Jeff Bezos,” one resident reportedly told Insider.

Less than 400 people call Hunts Point home, but the neighborhood is filled with multiple billionaires and other members of the business elite. Former Microsoft Corp  CEO Steve Ballmer and Costco Wholesale Corporation  co-founder James Sinegal are among the residents of Hunts Point. 

Check This Out: Jeff Bezos Denies Elon Musk’s Allegation That He Told People To Sell Tesla Stock: ‘100% Not True’

Although Bezos never made appearances at any of the neighborhood gatherings or fundraising events, his staff was regularly seen roaming the area. Bezos had a personal chef who lived in the neighborhood and delivered meals to Bezos on a golf cart, one resident said. 

The billionaire’s security guards also lived in a house near the entrance of the neighborhood and were very friendly to other residents. They had often been seen taking misaddressed packages to other doorsteps — how ironic. They also were involved in reporting suspicious persons and behavior. 

Although Bezos kept his gate closed and rarely showed his face, he still acted like he ran the place.

“Jeff Bezos acts like he owns Hunts Point,” one resident said. 

Another neighbor told Insider that he never seemed to live there full-time. “He’s not much of a neighbor,” the resident said.

Last year, Bezos announced he was leaving the Seattle area for Miami. 

“My parents have always been my biggest supporters. They recently moved back to Miami, the place we lived when I was younger ... I want to be close to my parents, and Lauren and I love Miami,” Bezos said in an Instagram post. 

When Bezos bought his home in Hunts Point in 2019, he was the richest person in the world. At the time of writing, Bezos was ranked third on the Forbes real-time billionaires list with a net worth of approximately $221.3 billion.

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• Jeff Bezos Says Coffee Meeting With Costco’s Founder Saved Amazon From Near Collapse – Now It’s A $2 Trillion Giant

Some elements of this story were previously reported by Benzinga and it has been updated.

Image created using artificial intelligence via Midjourney.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

The U.S. division of Stoli Group hopes to get a deal under Chapter 11 bankruptcy protection.

The company applied on Nov. 27 to the U.S. Bankruptcy Court in the Northern District of Texas.

Stoli Group USA, based in New York, and Kentucky Owl American whiskey business plan to restructure all assets, valued up to $500 million. See below.

New On The Block

• Ally Financial is auctioning off its credit card unit after just three years of ownership, per Bloomberg. The Detroit-based auto lender acquired the segment in 2021 for $750 million.
• D.W. Shaw hired Alantra Partners to run the sale process for its Spanish non-performing loans and real estate assets, Bloomberg reports. The value of the portfolio is roughly €380 million (US$402 million).
• Mumbai-based Edelweiss Financial Services of India hired Nomura to find a buyer for a minority stake in its mutual fund business, which could have a total valuation of $700 million to $800 million, according to the Economic Times.

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Updates From The Block

• The Container Store has been unable to ink a deal or find financing. According to CNN, the Coppell, Texas-based company — known for selling bins — hoped for a $40 million financial lifeline from Beyond, the owner of Bed Bath & Beyond and Overstock.com. But, the agreement hasn’t worked out and now the franchise is on the verge of bankruptcy, although it hasn’t filed yet.
• Anglo American  agreed to sell its Australian steelmaking coal mines to Peabody Energy  for about $3.8 billion. This comes just days before mining giant BHP Group Ltd is allowed to renew its takeover efforts for Anglo American.
• Acquisition-hungry UniCredit (Milan: UCG) offered to acquire Italian lender Banco BPM (Milan: BAMI). The €10 billion offer was rejected, according to Axios. UniCredit also wants to buy Germany-based Commerzbank.
• Gold miner Newmont Corporation sold its Éléonore mine in Quebec Tuesday to London-based Dhilmar for $795 million in cash. The sale follows Newmont's strategy to divest non-core assets following its milestone acquisition of Newcrest Mining in 2023.
• Schneider National, Inc. disclosed that it has agreed to acquire Cowan Systems, LLC and its affiliates for approximately $390 million in cash, subject to adjustments. The deal also includes a separate purchase of related real estate assets for $31 million.

For last week’s Deal Dispatch, click here.

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Image: Benzinga

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.