Yahoo Sports Expands Into Esports: What It Means For Business
Yahoo! Inc. (NASDAQ: YHOO) has announced the launch of Yahoo Esports, a destination for coverage of top global esports events. Yahoo Esports is Yahoo’s attempt to bring the content and coverage of Yahoo Sports to the world of video game competition.
“Yahoo Esports will have an emphasis on unique video content experiences covering live tournaments while going inside the action to focus on the players and competition with expert commentary, marquee interviews and in-depth features – in addition Yahoo Esports will maintain industry wide calendars, stats and player rankings,” Yahoo said in a press release.
For those unfamiliar with the popularity of esports, Yahoo estimates the global audience reach exceeded 226 million in 2015.
In terms of business, more than 40,000 fans attended the 2014 League of Legends championships in South Korea. In addition, SuperData Research estimates that the competitive gaming industry generated $750 million in revenue in 2015 and could reach $1.9 billion by 2018.
The rise of esports could also provide a boost to the companies producing the most popular competition games. The most popular esports game at the moment is "League of Legends," produced by Tencent Holdings Ltd (OTC: TCTZF) (OTC: TCEHY)’s Riot Games. Activision Blizzard, Inc. (NASDAQ: ATVI)’s "Heroes of the Storm" is another top esports game.
A push into esports may just be a drop in the bucket for a company the size of Yahoo, but with the stock down more than 25 percent in the past year, investors will take every drop they can get.
Disclosure: The author holds no position in the stocks mentioned.
Image Credit: By Gene Wang - https://www.flickr.com/photos/gene_wang/14757694038, CC BY 2.0, Wikimedia
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