The Acquisition of OS Studios by Project Worldwide

Project Worldwide, an employee-owned network of creative agencies, has expanded its reach in the esports and gaming sectors with the acquisition of OS Studios. The New York-based OS Studios provides creative, production and consultancy services to brands looking to expand into live and remote gaming and esports broadcasts. Its clients include prominent gaming studios and platforms such as EA Sports, Activision Blizzard, Take-Two Interactive and Twitch.

Also based in New York, Project Worldwide is an independent, global network of wholly owned creative agencies that employs over 2,200 people in 52 offices. The acquisition of OS Studios will expand the network’s capabilities in the US and internationally.

An Interview With Josh Wong, Director, Investment Banking at JEGI CLARITY

How have gaming and esports companies like OS Studios performed through COVID-19?

Generally, very well. The native digital nature of gaming and esports allows these types of businesses to naturally pivot live experiences into the digital and online space. While secular trends demonstrated significant tailwinds before COVID, the social distancing environment has forced all businesses to re-evaluate remote delivery models and accelerated the adoption of gaming and other forms of interactive media.

What are the primary challenges and diligence areas investors are looking at in esports?

Understanding IP concentration and looking for assets that will benefit from broad industry trends without being dependent on individual gaming titles. Also, understanding that these business models have attractive economics as they scale and that gaming and esports is only the beginning. As these businesses prove their creative and technical capabilities, the aperture opens, and larger non-endemic clients look to businesses like OS Studios to produce work outside of the gaming and esports worlds.

Are transactions like this one expected to increase in the gaming and esports industry?

Absolutely. The industry is nascent and experiencing tremendous growth, but highly fragmented. Strategic players and financial sponsors are looking for top notch capabilities in the space. They are leveraging M&A as a tool to build end-to-end platforms to reach gaming audiences through authentic experiences.

To learn more about this transaction please contact Josh Wong at jwong@jegiclarity-us.com or (212) 754-0710.