The Most Valuable Esports Companies 2020

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It’s been a tough year for esports—soaring valuations have flatlined, investors have cooled and companies are scrambling to reboot

, earning $6 million last year. FaZe now boasts over 230 million followers across all its related social platforms and is worth $305 million to rank No. 4.

“What you have seen in the last year is other esports companies are catching on to what has been our philosophy from Day 1, which is to explore the outer reaches of what gaming can be,” says FaZe Clan’sBut the losers outweighed the winners this year. Among the hardest hit was Immortals Gaming Club, another Los Angeles-based group, which fell off the list because of a singular focus on competitive gaming.

It’s an industry-wide reckoning that Sharma, the esports investment advisor, says will trim the weak, empower the strong and open up “very meaningful opportunities and upside.” Revenue flatlined at Los Angeles-based NRG after its CDL and OWL teams had to cancel ticketed in-person events and stage them online for free. Some of the gap was filled with its higher-margin online content business, including sponsored streams on Twitch and videos on YouTube. Last month, the company opened the Castle, a funhouse, gamers’ version of a fraternity house and production studio to churn out digital content that can be sold to sponsors.

“If your goal is just to be the Dallas Cowboys and just operate in competitive gaming, that is cool, but it’s a long way off,” says Andy Miller, CEO of NRG and co-owner of the NBA’s Sacramento Kings. “There’s not going to be one thing in gaming making you money.”spoke to two dozen esports organizations, investors, advisors to investors, and analysts.

 

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