SANTA MONICA - Super League (NASDAQ:SLE), a content creator and media solutions provider, has completed the sale of its Minehut business unit to GamerSafer, a startup specializing in online gaming security. The deal, approved by the boards of both companies, is part of Super League's strategy to focus on its core business of partnering with major brands to develop 3D experiences across various immersive platforms.
Minehut, known for its vibrant community of Minecraft players and servers, will continue to be accessible to Super League's partners through a commercial relationship with GamerSafer. The latter plans to expand Minehut globally, leveraging its safety technology to enhance the gaming experience.
Super League's CEO, Ann Hand, expressed confidence in GamerSafer's ability to grow the Minehut business. "Minehut is in great hands with GamerSafer," she said. "As a commercial partner, we look forward to observing GamerSafer’s continued success."
Rodrigo Tamellini, Co-founder and CEO of GamerSafer, emphasized the enhanced value this acquisition brings to the community and brands. He also highlighted the alignment with GamerSafer's dedication to the Minecraft ecosystem, which includes various projects and partnerships, such as the official Minecraft server list developed with Mojang Studios.
This transaction is a step forward in Super League's cost improvement initiatives and reflects a strategic decision to concentrate on its strengths in creating and operating 3D immersive spaces for socializing, playing, and creating.
The financial terms of the sale have not been disclosed.
GamerSafer, a Silicon Valley-based company established in 2019, aims to scale secure and fair play experiences to millions of players worldwide. Its technology is already protecting over 15 million players in 85 countries.
This news is based on a press release statement from the involved companies.
InvestingPro Insights
As Super League (NASDAQ:SLE) hones its focus on developing immersive 3D experiences, a glance at the company's financial health and market performance provides valuable context for investors. According to InvestingPro data, Super League holds a market capitalization of 9.91 million USD, which is indicative of its size in the competitive media solutions landscape.
The company's strategic move to sell its Minehut business unit comes at a time when it is trading at a low revenue valuation multiple, with a Price / Book ratio as of the last twelve months ending Q1 2023 at 0.6. This suggests that the stock might be undervalued relative to the company's book value, which could be an attractive point for investors looking for potential growth opportunities.
However, it is important to note that Super League has not been profitable over the last twelve months, with an operating income margin of -103.86%. This is complemented by the fact that its cash burn is a concern, with the company quickly burning through cash. This financial situation might be a factor that influenced the decision to divest Minehut, as the company seeks to streamline operations and improve its cost structure.
For those considering investment in Super League, it's worth noting that the stock price has shown volatility but also resilience with a strong return over the last month at 15.27% and over the last three months at 34.48%. While past performance is not indicative of future results, these recent upticks could signal a positive response to the company’s strategic decisions.
To gain further insights into Super League's financial health and market performance, investors can explore additional InvestingPro Tips that provide a deeper analysis of the company's prospects. For instance, there are 14 more tips available on InvestingPro, including insights on shareholder yield and analyst projections. For those interested, they can access these tips and enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
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