M&A
Color Star Technology Eyes Major Acquisition in Esports Hotel Industry
Color Star Technology Co., Ltd. (Nasdaq: ADD), a prominent player in the entertainment technology sector, has announced its intentions to acquire a significant stake in JingXiang (Australia) Pty. Ltd. The non-binding letter of intent (LOI) reveals plans for the acquisition of over 60% of JingXiang (Australia)’s shares.
JingXiang Group, renowned for its innovative digital services, is revolutionizing the hotel industry by integrating electronic sports (esports). Their offerings include a state-of-the-art supercomputing platform, an esports SaaS tailored for hotels, and a central reservation system (CRS) for these establishments. Notably, JingXiang (Australia) will soon consolidate and singularly provide these three services, which are currently distributed among its subsidiaries.
JingXiang’s supercomputing platform boasts cutting-edge technology, ensuring low-latency, high-definition remote streaming, and meeting top-tier esports gaming standards. The Group’s impressive portfolio includes over 3,000 cloud computer cases, 160+ servers, around 100 network switches, and a slew of patents and software copyrights, some appraised at staggering values.
Furthermore, JingXiang’s diskless architecture cloud storage technology is a game-changer, offering remote access to hardware, operating systems, and software programs. Catering to the burgeoning esports hotel market, JingXiang’s CRS is a one-stop platform for gamers and esports hotels, encompassing a range of features from merchant integration to data analysis. Their alliance with various esports hotel brands and a robust membership system solidifies their position in the industry. This prowess has earned them an exclusive partnership with Tencent Esports, integrating their CRS into the ‘Tencent Esports GO’ ecosystem.
Louis Luo, Color Star’s CEO, expressed optimism about the potential acquisition, emphasizing the synergy between the company’s celebrity network and the esports events. Guchuan Lu, JingXiang’s CEO, echoed this sentiment, highlighting the vast potential of the esports market. He revealed plans to expand their esports business across Asia and, post-acquisition, to tap into the European and American markets with Color Star’s support.
However, it is crucial to note that the completion of this transaction hinges on several factors, including due diligence, definitive agreement negotiations, and approvals from relevant authorities. The non-binding nature of the LOI means that there’s no guarantee that the acquisition will materialize.
Via PRNewswire
