GiG set to separate media division from platform business to drive shareholder value
Gaming Innovation Group (GiG) intends to separate into two independent publicly listed companies.
The move will be explored as part of a strategic review aimed at optimising growth opportunities for each of its main business segments.GiG’s subsidiary, Innovation Labs Ltd, will be distributed to GiG’s shareholders, resulting in the creation of two main business segments.
The first newly formed business will include GiG’s media services, including all of GiG’s lead generation and affiliate business.
In Q4 2022 results released today (15 February), GiG’s media segment generated all-time high revenue of €17.8m.
The second entity will focus on GiG’s platform & sportsbook business, which also reached record quarterly revenue of €8.2m in Q4.
It will include the technical iGaming platforms, front-end development, and other managed services such as player safety, customer operations and CRM/marketing.
GiG CEO Richard Brown commented: “This is a very exciting time, both for the company and its employees but also for the shareholders of GiG.
“I strongly believe that a split has the potential to remove hurdles and unleash new possibilities for each business segment, and that we can create two very successful companies.”Leading shareholders have pushed for a split of the two businesses to drive value dating back to 2021.
At the time, GiG employee and shareholder Hessi Mocca said: “Are we a media company with a good platform or are we a platform company with a good media? There is nothing central keeping those two companies together.”
GiG believes the split will allow the two businesses to grow much faster than in the current corporate structure.
Petter Nylander, chairman of the board, said: “Each of our Platform and Media business has reached such a maturity where it makes perfect sense to evaluate a potential split.
“We are looking forward to initiating the review and seeing how we can maximise operational output and shareholder values.”
The strategic review will be initiated immediately and continue throughout 2023, with a focus on outlining the strategic and operational objectives necessary to execute the split.
Final execution will be subject to all necessary corporate actions, including shareholder approvals.
GiG has experienced significant growth in recent years, resulting in the recent acquisition of AskGamblers from Catena Media.