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Enthusiast Gaming faces CEO, board challenge from investment firm Greywood



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Greywood Investments, an funding agency with a major stake within the publicly traded esports and gaming media firm Fanatic Gaming, introduced a marketing campaign to switch Fanatic’s CEO and board members Tuesday.

Toronto-based Fanatic Gaming owns various online game targeted publications and types, together with Destructoid, Upcomer and Addicting Video games. The esports group Luminosity Gaming, which fields rosters within the Overwatch and Name of Responsibility esports leagues in addition to in “Valorant,” can be a subsidiary of Fanatic. On its web site, the corporate boasts that it reaches an viewers of over 300 million avid gamers every month. The corporate’s share worth dropped under $2 Tuesday.

In a letter addressed to Fanatic’s board of administrators, which incorporates NFL cornerback Richard Sherman, Greywood’s representatives expressed disappointment within the firm’s declining fortunes.

“The irritating half for shareholders is that the Firm does in actual fact possess extraordinarily proficient personnel growing and/or implementing notable methods,” reads Greywood’s letter. “We consider Fanatic ought to have a market worth of US$1-2 billion, not the anemic US$250-300 million market worth below the present management.”

Fanatic Gaming didn’t instantly reply to a request for remark.

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Of their letter, Greywood identifies itself as the most important shareholder in Fanatic, having acquired roughly 9.3 p.c of the corporate’s excellent shares at the price of over $30 million. Greywood’s web site describes the agency as one which “seeks to work constructively with portfolio firms and different stakeholders to actively help and help administration in growing and realizing the corporate’s full potential.”

Final fall, in response to the letter, the agency reached out to Fanatic to precise “grave considerations” in regards to the firm’s route; in response, the agency stated it obtained “a terse, generic, disingenuous and dismissive e mail.”

Throughout the primary 5 months of 2022, Greywood acquired more and more giant stakes in Fanatic. In January, the agency made two filings with the Securities and Trade Fee marking that it had acquired 7 p.c of whole shares, then bumping that stake as much as 8 p.c simply weeks later. In these filings, Greywood describes itself as an funding supervisor for an organization known as Vantage Buying and selling, which holds the overwhelming majority of Greywood’s 9.3 p.c stake in Fanatic.

Within the letter, the group outlines an “Upgrade Enthusiast” marketing campaign, the first pillar of which is to switch Adrian Montgomery, the corporate’s present CEO. Greywood additionally notes its intention to appoint a collection of “extremely certified and ” candidates at a shareholder assembly in June.

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