- Metaverse upstart Infinite Reality is buying esports and talent company ReKTGlobal for $470 million.
- The all-stock deal could bolster Infinite Reality’s investor discourse as it appears to be going public this year.
- The companies plan to create digital spaces for ReKTGlobal’s list of influencers and games.
Infinite Reality, a company that builds metaverse worlds for brands and creators, on Tuesday announced plans to buy esports and influencer talent startup ReKTGlobal for $470 million in an entirely in shares.
The acquisition gives ReKTGlobal shareholders a roughly 19% stake in the combined company, which it says would be valued at around $2.5 billion.
The deal presents an opportunity for the two companies to create metaverse spaces for fans of ReKT’s esports teams and the influencers it manages in its talent division.
Content creators and other celebrities have helped boost user engagement in virtual worlds, with musical artists like Lil Nas X and Travis Scott drawing large crowds for live performances in video games like Roblox and Fortnite, for example.
The acquisition could also boost Infinite Reality’s presentation to investors this year as it plans to go public via a reverse merger with a smoke and fire alarm company called Universal Security Instruments. A reverse merger occurs when a private company goes public by buying a listed company. Sometimes, as in this case, the two companies sell completely disparate products.
ReKTGlobal’s list of influencers and esports brands could also help Infinite Reality connect the dots between social media and the more nascent metaverse-building business.
“Ultimately, we want to deliver a complete product where we reach audiences who will be early adopters,” John Acunto, CEO of Infinite Reality, told Insider. “What are kids doing today? They use social media and games.”
With its purchase of ReKTGlobal, Infinite Reality enters the buzzing world of esports, which Insider Intelligence predicts will hit $1.8 billion in revenue in 2022.
ReKTGlobal owns esports organizations Team Rogue and the London Royal Ravens. It also bought talent management agency TikTok TalentX Entertainment last year. It bought digital media companies Greenlit Content and Fearless Media in 2019 and 2020, respectively, to bolster its advertising business.
Infinite Reality designs video game-style spaces for fans and customers to engage with brands and influencers. She owns a visual production studio and a social media e-commerce platform. The company said it is focused on creating separate metaverse environments for customers rather than becoming a centralized hub like Meta Platform’s Horizon Worlds.
As leaders across industries grapple with how to get involved in the metaverse trend, Infinite Reality is trying to position itself to serve as their guide.
The company makes money by offering technical services through its APIs and software development kit (SDK). Acunto said he expects customers to use Infinite Reality’s e-commerce technology to sell digital assets such as NFTs (non-fungible tokens) or real-world items.