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EGW-NewsEsportsAll newsParent companies Luminosity Gaming and MAD Lions lost 82% of their capitalization in 2022
Parent companies Luminosity Gaming and MAD Lions lost 82% of their capitalization in 2022
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Parent companies Luminosity Gaming and MAD Lions lost 82% of their capitalization in 2022

According to the Sports Business Journal journalists, Enthusiast Gaming and OverActive Media, the parent companies of the esports organizations Luminosity Gaming and MAD Lions, respectively, lost 82% of their capitalization in 2022. According to journalists, the main reason for such a noticeable drop is the decline in confidence on the part of key investors.

The difficulties of public esports companies are indicative of the broader challenges facing the industry. Despite the rapid growth of esports in recent years, it remains highly volatile and subject to external influences. Esports companies will need to adapt to these challenges in order to stay afloat in an increasingly competitive and changing market environment.

In 2022, stock prices of several public esports companies fell by more than 50%:

  • Enthusiast Gaming (owns Luminosity Gaming) - -82%
  • OverActive Media (owns MAD Lions) -82%
  • Guild Esports - -62%
  • GameSquare Esports (owns Complexity Gaming) -54.1%
  • Astralis - -44.2%

Infinite Reality, the parent company of esports holding ReKTGlobal, also had a rough year and is now looking to go public in a $770 million SPAC deal.

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The journalists did not forget to tell about the FaZe Clan organization. The esports company lost $1.6 billion after going public last summer, with quarterly losses measured in "nine figures". Motorsport Games, which owns the NASCAR franchise among other things, has reportedly lost 92.2% of its value since the start of the year.

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