The two firms together will be launching a new platform focused on eSports.
Azubu, an online eSports live streaming platform, has acquired rival service Hitbox for an amount that has been reported to be in the "tens of millions of dollars." The Austria-based Hitbox announced the acquisition today, with CEO Martin Klimscha stating that the decision might come as a surprise to some users, but wants to reassure their users, saying "I can assure this is a great opportunity We chose Azubu because with them we can continue to do what we love most: create great technology for gamers and eSports fans."
The new combination of both Azubu and Hitbox hopes to monetize the over 200 million eSports fans in innovative new ways. Currently, advertising represents 70% of revenue, with subscriptions and donations making up another 15%. The new Azubu-Hitbox company is targeting innovative new products in affiliate marketing, interactive sponsor-based advertising, virtual goods sales, sponsorships and in-game betting to close the gap between the revenues of traditional sports and eSports.
Klimscha has also stated that while there are no current plans to make any changes to Hitbox, the two companies will be working together to "launch a new platform, focused on optimising the mobile user experience and monetisation technologies, strengthened by our internally developed technologies, technical partner relationships and a passionate team dedicated to pushing the boundaries of video game live streaming."
Mike McGarvey, CEO of Azubu, also made a statement about the acquisition, saying “We’re incredibly excited to welcome the talented Hitbox team into the Azubu eSports family. Over the years, Martin’s team at Hitbox has designed and developed industry-leading eSports streaming and platform technology while developing a passionate and dedicated following of millions of competitive gaming enthusiasts. The synergies between our respective companies created a compelling opportunity to join forces and I couldn’t be more excited about leading both teams moving forward.”