13.26k followers • 14 symbols Watchlist by Motif Investing
Given its convenience and social aspects, multiplayer online gaming could continue its fast growth and transform the gaming industry away from the console model.
Curated by Motif Investing
The geeks shall inherit the earth. Unless they're too busy gaming. Multiplayer Online Role Playing Games (MMORPG), where players assume roles and do battle over the internet, are booming. It's social, it's cheap, and it's global. MMORPGs generate revenue from subscriptions and from selling virtual goods. PC gaming revenue rose 8% in 2012 to generate $20 billion worldwide, and it's expected to hit $25.7 billion by 2016. Meanwhile, US sales of game consoles fell 21% in 2012. The console market is in a two-year slump as consumers increasingly play Web-delivered games.
MMORPGs are attractive business propositions: the development cost and time required are a fraction of those for console games and online games can scale rapidly.
We identified US-listed stocks and American Depository Receipts of companies that are engaged in activities relevant to this watchlist's theme. We then filtered out companies that have a share price of less than $1.00 or a market capitalization less than $100 million, and excluded illiquid stocks by screening companies for liquidity i.e. average bid-ask spreads, dollar volume traded etc. Finally the proprietary Motif Optimization Engine determined the constituent stocks. Learn more about how we select our watchlists.Who made these selections?
Motif is an online brokerage built on thematic portfolios of up to 30 stocks and ETFs. Founded in 2010 by Hardeep Walia, Motif combines complex proprietary algorithms with skilled advisers to develop these thematic portfolios. Learn more about our team.How are these weighted?
First, we determined each company's percentage of total revenue derived from this watchlist's theme. Second, we applied a pure-play factor to give greater relative weight to companies that derive a higher percentage of their revenue from this theme. Finally, we weighted each company by its market capitalization adjusted for revenue exposure to the theme.
More details on how we build and weight watchlists are available here.
|Watchlist||Change today||1-month return||1-year return||Total return|
|Online Gaming World||-1.76%||+29.49%||-21.99%||+47.42%|
|Symbol||Company name||Last price||Change||% change||Market time||Volume||Avg vol (3-month)||Market cap|
|NTES||NetEase, Inc.||450.76||-13.18||-2.84%||4:00 pm GMT-4||565.36k||603.23k||63.46B|
|ATVI||Activision Blizzard, Inc.||80.78||-1.17||-1.43%||4:00 pm GMT-4||4.67M||6.49M||62.35B|
|EA||Electronic Arts Inc.||130.02||-2.26||-1.71%||4:00 pm GMT-4||1.79M||2.07M||37.55B|
|TTWO||Take-Two Interactive Software, Inc.||164.34||-3.12||-1.86%||4:00 pm GMT-4||1.22M||1.33M||18.79B|
|ZNGA||Zynga Inc.||9.12||+0.05||+0.55%||4:00 pm GMT-4||15.24M||19.60M||9.81B|
|CZR||Caesars Entertainment, Inc.||54.49||-3.72||-6.39%||4:00 pm GMT-4||23.78M||9.82M||8.76B|
|CHDN||Churchill Downs Incorporated||165.96||-8.29||-4.76%||4:00 pm GMT-4||313.75k||278.38k||6.82B|
|YY||JOYY Inc.||77.9||-0.10||-0.13%||4:00 pm GMT-4||293.86k||981.06k||6.29B|
|MOMO||Momo Inc.||13.67||-0.29||-2.08%||4:00 pm GMT-4||3.44M||3.84M||2.85B|
|IGT||International Game Technology PLC||11.03||-0.52||-4.50%||4:00 pm GMT-4||2.90M||2.50M||2.26B|
|GLUU||Glu Mobile Inc.||7.62||+0.16||+2.14%||4:00 pm GMT-4||3.28M||4.46M||1.30B|
|SOHU||Sohu.com Limited||20.1||+2.06||+11.42%||4:00 pm GMT-4||1.86M||878.78k||789.30M|
|CYOU||Changyou.com Limited||10.74||+0.01||+0.09%||4:00 pm GMT-4||406.53k||406.53k||575.75M|
|CMCM||Cheetah Mobile Inc.||1.89||-0.03||-1.56%||4:00 pm GMT-4||118.31k||631.06k||263.29M|
(Bloomberg) -- William Hill Plc has chosen to sell itself to a rival rather than private equity, yet the 2.9 billion pound ($3.7 billion) deal could still end up in a breakup of the U.K. gambling company.Caesars Entertainment Inc.’s takeover bid was accepted by William Hill’s board, according to a statement Wednesday, strengthening its position to expand in the lucrative business of online gaming in the U.S.If its bid is successful, Caesars said its focus would be on London-based William Hill’s American assets and it would “seek suitable partners or owners” for the other businesses, such as the U.K. The British company has been focused on its U.S. operations after the Supreme Court legalized sports betting in 2018, while its older markets have suffered from tighter regulation.Wednesday’s statement looks to have shut out a rival bid from buyout firm Apollo Global Management Inc. From William Hill’s perspective, a deal with Caesars may have been all but inevitable: the companies already operate a joint venture in the U.S., and Caesars said Monday it could terminate aspects of it if Apollo’s approach prevailed.Caesars said the joint venture “needs to be broadened in scope in order to fully maximize the opportunity in the sports betting and gaming sector.” It estimates the U.S. sports and online betting market could be worth as much as $35 billion.Logical Move“It looks like a logical and natural move of consolidation of this round of U.S. brick and mortar players acquiring online knowledge,” Itai Pazner, chief executive officer of online gambling company 888 Holdings Plc, said in an interview on Wednesday. “I see a lot of opportunities in terms of M&A, either bolt-on M&A as we have been doing for the last few years, or something more strategic.”One example of this trend is Flutter Entertainment Plc’s purchase of the Stars Group Inc., which it completed in May.Though William Hill benefited from its U.S. presence, it’s been caught by changing rules in its home market. Founded in 1934, its betting shops became ubiquitous around Britain, but hundreds were rendered unprofitable by a 2018 U.K. government crackdown on the stakes companies could charge on betting terminals.Gambling advertising has also been curtailed -- some voluntarily by operators -- while taxes on online betting have risen. Canceled sporting events and lockdowns due to the pandemic have accelerated store closures.Caesars’s cash offer of 272 pence per William Hill share needs the approval of 75% of the British bookmaker’s shareholders, according to the statement. It’s a 25% premium to William Hill’s closing share price before takeover interest was reported by Bloomberg on Friday.William Hill shares were little changed at 274.3 pence at 10:22 a.m. in London.“William Hill is worth significantly more than the 272p Caesars bid,” Jefferies analyst James Wheatcroft said in a research note. “But with the recently revealed poison pill structure of the JV and now a WMH Board recommendation, Caesars Entertainment is well-placed to realize the full upside.”(Updates with 888 CEO comment in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Online gambling is suddenly the hottest segment of the international gambling market. DraftKings (NASDAQ: DKNG), Everi Holdings (NYSE: EVRI), GAN Limited (NASDAQ: GAN), and even Penn National Gaming (NASDAQ: PENN) have been shooting higher for the past six months on hopes that online gambling will be a highly profitable business for them. MGM Resorts (NYSE: MGM) is one of the biggest online gambling companies in the U.S. already, and it is slowly expanding its presence.
What happened Shares of Sohu.com Limited (NASDAQ: SOHU) soared on Tuesday after the company announced its subsidiary Sogou (NYSE: SOGO) is being acquired by Chinese conglomerate Tencent Holdings (OTC: TCEHY) for $1.