The Board of Gaming Innovation Group (GiG) has decided to initiate a strategic review with the intention to distribute its subsidiary Innovation Labs to GiG’s shareholders. Such distribution separates the group into two independent publicly listed companies, splitting current GiG into two main business segments.
- Media Services, which includes all of GiG’s business generating online gambling leads through online media buys and publishing.
- Platform & Sportsbook, which includes the technical iGaming platforms (including Sportnco), front-end development and other managed services such as player safety, customer operations and CRM/marketing.
The purpose of the split is to sharpen the focus for each business segment, optimize growth opportunities and ensure each business can benefit from the strategic and financial flexibility of their distinctive business models, according to the company. The split will form two businesses with the potential “to grow much faster than in the current corporate structure.”
The strategic review would be initiated immediately and continue throughout 2023, and will initially focus on outlining the strategic and operational objectives that need to be achieved in order to execute the split. Final execution will be subject to all necessary corporate actions, including shareholder approvals.
GiG CEO Richard Brown
Richard Brown, CEO of GiG, said: “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.”
Petter Nylander, Chairman of the Board, commented: “Each of our Platform and Media businesses 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 maximize operational output and shareholder values.”
The announcement was made on the same day that GiG reported record revenue for the Q4 2022 period. Revenue for the three months to 31 December stood at €26 million ($27.9 million), an all-time high and 44.4% higher than in the corresponding period in the previous financial year.
Original article: https://www.yogonet.com/international/news/2023/02/20/66130-gig-launches-review-to-split-the-group-into-two-different-companies
