This Week's Stock Alert: (NASDAQ:GPAK) A RECENT IPO PLACES GAMER PAKISTAN INC. (NASDAQ: GPAK)AS THE FIRST AI-BASED ESPORTS PUBLIC ENTITY ON WALL STREET.  eSports is now a multi-billion-dollar opportunity for forward-thinking investors and Gamer Pakistan Inc. (NASDAQ: GPAK) may be leading the way! Instead of baseball, hockey, chess, or curling, it's video games like CSGO, League of Legends, Call of Duty, or Fortnite that are taking the world by storm as young gamers flock to eSports. Stadiums and ballparks are being replaced with virtual arenas and game modes in a trend that is not likely to slow down at any time. The world is barely scratching the surface of what's possible for esports. All of this means that Gamer Pakistan Inc. (NASDAQ: GPAK) is in the right place at the right time with its recent market debut. In October of 2023, GPAK went public on the NASDAQ exchange as the very first artificial intelligence-based eSports public company! The company is also the FIRST Pakistani-based company to list on the U.S. Capital Market. Leading GPAK is CEO James Knopf, an entertainment sales professional with more than 25 years of expertise navigating large-scale content distribution partnerships across platforms such as TV, digital, mobile, and over-the-top, or OTT services. ESPN Notably, Knopf and his Pinstripe Entertainment Consulting firm collaborated with ESPN in 2019 to host the very first NCAA College Esports Championship, which was broadcast on ESPN3! WITH A FOCUS ON THE RAPIDLY RISING ESPORTS INDUSTRY AND A SPECIAL EMPHASIS ON PAKISTAN AND SOUTH ASIAN MARKETS, Gamer Pakistan Inc. (NASDAQ: GPAK) IS AT THE BEGINNING OF ITS GROWTH STORY AND AIMS TO BUILD TREMENDOUS SHAREHOLDER VALUE ALONG THE WAY! THE TOP 5 REASONS TO PAY ATTENTION TO GPAK RIGHT NOW: - 01
The AI boom is here, and the company is now the very first AI-based esports company on the market. - 02
eSports is a growing arena that is expected to hit $6.75B by 2030 . - 03
The company wants to differentiate itself as the go-to platform for university esports enthusiasts and to create increasingly exciting events for large audiences with state-of-the-art video coverage and interactive options for players and fans in South Asia and the Pakistani diaspora. - 04
Recent trends show Pakistani youth attraction towards the esports industry which is considered as new Hollywood due to the sponsorship and organizations involved in it, according to a study published during Covid-19 lockdown in 2020. - 05
Globally, broadcast and streaming revenue is still relatively underdeveloped as broadcasters look for esports content with the widest demographic appeal. ESPN, Disney, and ABC are involved in television broadcasts of esports events, and Twitch, YouTube, and Facebook have become important streaming platforms. As this develops, the company is ready to capitalize. Greetings Investors, eSports refers to competitive video gaming, where professional players and teams compete in various video games for prizes and recognition. It has been generating significant buzz in recent years with events like the League of Legends World Championships. Young gamers between the ages of 18 and 25 watch eSports 34% more than traditional sports, as reported by CNBC.  In addition to this, competitive eSports and their increasing popularity captured the attention of the International Olympic Committee (IOC) who made the significant decision to formally acknowledge eSports as a legitimate sport in 2017! Thanks to the pandemic, the nature of eSports changed. The pandemic led to viewing spikes across all live-streaming platforms. This is because people were required to spend time at home during the lockdown and many turned to livestreaming to pass the time. One of the major reasons for eSports' popularity is its accessibility. eSport games can be accessed from computers, smartphones, tablets, and gaming consoles, making it convenient to play whenever and wherever. And let's not forget that it is also extremely entertaining for everyone involved! The eSports industry has seen tremendous growth over the years, both in terms of viewership and revenue. Every year, Newzoo produces a Global Games Market Report, which analyzes the latest gaming, market trends, and market developments. In addition, every couple of years they release a Global eSports & Live Streaming Market Report (2022 is the most recent edition of this report), looking more specifically at the world of eSports.  Newzoo recognizes the significant role that live streaming plays in the eSports and gaming worlds. According to its 2022 report: - ↝The global eSports audience will grow by +8.7% year on year to reach 532 million.
- ↝eSports enthusiasts—those who watch eSports content more than once a month—will account for just over 261 million.
- ↝Occasional viewers—those who watch eSports content but less than once a month—will account for the remaining 271 million.
In the US, the esports sector encompasses a wide range of activities, including professional leagues, tournaments, team organizations, player contracts, and sponsorships. The sector has seen significant growth and popularity in recent years. According to Grand View Research's data, the global eSports market size was valued at USD 1.88 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 26.8% from 2023 to 2030 As GPAK creates a global community with competitive gameplay through an eSports platform, the company's stock could generate major buzz on Wall Street Company Overview Gamer Pakistan is an eSports event development company that was founded in November 2021 to create college, inter-university, and professional eSports events in Pakistan.  The firm's core areas of operation encompass game development, in-game AI community engagement, and the organization of e-Sports events in the country. Operations are conducted through wholly-owned subsidiary K2 Gamer PVT Ltd. , which GPAK has 90% ownership in. - ↝Over 800 teams have registered in different Gamer Pakistan competitions.
- ↝400+ eSports teams have been registered exclusively in esports competitive games including PubG®, Call of Duty®, DOTA2®, Free Fire®, Tekken®, FiFa®, Valorant® and CSGO®.
For the time being, GPAK intends to focus on colleges and institutions (for both men's and women's teams), but it aims to extend to other sectors and even explore live sports in the future. The company also plans to proffer development contracts with the top winning teams in Valorant and Call of Duty to provide for the betterment and development of these aspiring eSports athletes. The Opportunity The choice of eSports to launch college sports programs in Pakistan was only logical. eSports is recognized as a true sport in Pakistan, which has a very young population. About 65% of Pakistan's 231 million residents are below the age of 30 and many are already gamers. Asia leads the world in esports, accounting for 46% of gamers worldwide!  According to GPAK's prospectus, Pakistan is a market where mobile phone subscriptions have expanded at a breakneck speed, covering almost 80 percent of the population in 2020, up from only 0.2 percent in 2000. Pakistan has become a "mobile-first" gaming market in which cell phones are the primary mode for gaming rather than consoles or computers. In 2022, it was anticipated that 36.8 million individuals in Pakistan played games, with that figure expected to rise to 50.9 million by 2026. Revenue in the video game business is predicted to be around $208.7 million in 2022 and then $227.4 million by 2026! Although still relatively underdeveloped, Pakistan's esports industry, which is distinct from online gaming in Pakistan (gaming includes fantasy sports, games of chance and card games), is aggressively growing in the backdrop of the Digital Pakistan initiative launched by the former Imran Khan government in 2019. Esports are recognized as an official sport in Pakistan. With approximately 65% of the country's 207 million population is under the age of 30, 116 million broadband and 113 million 3G/4G subscribers, Pakistan is a huge potential market for video games and esports. THE BACK STORY GPAK's creation was partly inspired by a football game between college-age students from Pakistan and India, that was part of an upstart Pro League that was trying to get off the ground in 2012, according to its American Chief Executive, James Knopf. At the time, both countries had no college sports programs and American coaches went out to help train players and coaches. Given the historic tensions between the two nations, the game was held in Sri Lanka. "The level of the football was not great but the camaraderie between the players was amazing," Knopf told MarketWatch in an interview. "They were friendly, getting along and competing and even having conversations afterwards. It was a great thing. It set off a light bulb for the founders to develop rival series in all sports and that's the next phase of the company," he said. "Because there were no sports at any universities, there were no mascots, no merchandise, no alumni groups," added Knopf. "We had to engage in a partnership with the government to build an NCAA-type foundation for college sports and then partner with 119 universities." The Goal GPAK plans to acquire esports game developers and to introduce its own esports games for certain tournaments to further differentiate itself from our competitors. The company plans to create revenue from project content, merchandising and licensing of brand elements, name and likeness games in addition to ss rights and similar rights. GPAK is aiming to create 10 to 20 team franchises in Pakistan and charge $50,000 to $75,000 per franchise. The company will split the NIL rights, which enable college athletes to control and profit from their name, image, and likeness. It will also split the merchandising rights and is talking to broadcasters about deals. The company will also work with ad-tech company Trade Desk to access big advertisers. Trade Desk provides ad buyers with a digital platform to create and manage ad campaigns. Brands like Procter & Gamble (PG) and Unilever (NL: UNA) know they need to reach customers of college age.  "It's a real market blind spot, nobody is providing that service to reach them. Brand insertion into big deals is where we'll get revenue." Nick Venezia Chief Technical Data Officer Already, students in Pakistan are beginning to seek out and buy university sporting apparel and goods. GPAK is planning to hire a chief revenue officer in Pakistan to work with brands and agencies. And it's doing its bit to modernize the country's antiquated ad system. Additionally, the company is eyeing a unique avenue for revenue generation by collecting data on the mobility patterns of college students in Pakistan related to video gaming and then selling this data in ad exchanges The strategy is to establish a strong presence in the esports ecosystem of Pakistan by focusing on the following key pillars: - ↝Student and University Focus: Prioritize student needs and experiences.
- ↝Recognition: Gain recognition for university esports.
- ↝Unique Platform Development: Create a specialized esports platform.
- ↝Community Building: Foster a diverse esports community.
- ↝Professional Pathways: Establish career pathways in esports.
- ↝Industry Integration: Collaborate with the esports industry.
- ↝Continuous Innovation: Prioritize ongoing innovation and engagement.
In Summary… Gaming has evolved far beyond a niche group of gamers sitting at home playing alone on their consoles. It's now a competitive game that has become an organized event. eSports have become part of a booming business. This is an interesting new investment sector to follow, due to the high viewership many of these events draw in… Financial interest in eSports and general video games has grown exponentially since they first gained popularity. Big tech is even taking interest including Microsoft, who famously acquired Activision Blizzard for nearly $70 billion! Gamer Pakistan Inc. (NASDAQ: GPAK) may be the smartest way to get exposure to the fast-growing eSports arena and it is now the ONLY publicly traded AI-based eSports company around. Hurry and start your research! |