Super League Gaming Merger With Mobcrush Is Underway

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May. 20 2021, Published 2:01 p.m. ET

With Super League Gaming's record first-quarter earnings behind us, investors interested in SLGG stock are looking at what's next. The company's pending acquisition of Mobcrush comes to mind.

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How will SLGG stock respond to the Mobcrush merger amid a growing digital gaming market?

SLGG merger with Mobcrush is a synergetic match.

Super League defines itself as an experience platform for amateur esports video game players. The company doesn't stop there—it's also a content engine that gives gamers the opportunity to build their own videos and more. It's a business model driven by a community, however digital it might be.

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Mobcrush is a live streaming service that allows gamers and content creators to stream to YouTube, Facebook, and Twitch—the latter of which is a highly popular platform among the gaming community.  

Super League and Mobcrush fit together naturally, and the acquisition has the potential to expand the company's audience and global positioning incrementally. This is especially true as the industry comes out of the COVID-19 pandemic, which brought it a 75 percent increase in video game usage.

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How much the SLGG-Mobcrush merger is worth

The SLGG-Mobcrush deal, which will be finalized soon, went through with an all-stock transaction. It isn't clear what the precise valuation for the acquisition is, but it's definitely in the millions given Super League's own $104.79 million market cap.

How SLGG stock is faring after the initial merger announcement

Around the time that Super League announced that it was purchasing Mobcrush, SLGG shares ballooned. From Feb. 25 to March 19, SLGG stock boasted 230.29 percent returns. Since then, the stock has dropped 55.42 percent off its lifetime peak. Positive earnings and the winding down of the acquisition process have presented renewed opportunities for investors.

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The shares were up as much as 23.7 percent on May 19 and have corrected 8.8 percent since the market option on May 20.

What Stocktwits users have to say about SLGG amid merger news

Some Stocktwits users are talking about SLGG stock's short-lived success. Perhaps they're bitter about buying in on a bullish peak (it happens).

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Others are pointing out the affordable nature of SLGG stock compared to eSports Technologies (NASDAQ:EBET). SLGG is sitting at $4.52 per share, while EBET is at $21.63. Dollar value aside, SLGG is producing much more impressive returns than EBET from a YTD perspective.

Even WallStreetBets is banking on SLGG months after the initial swarm of investors took the digital stage.

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SLGG stock forecast

What's to come for Super League stock after the Mobcrush merger finalizes? The outlook is questionable, with analysts suggesting a 12-month return of anywhere from -4.7 percent to 79.5 percent in the green. The median forecast is currently at 37.3 percent, with analysts suggesting a buy-and-hold strategy on this one.

The Mobcrush acquisition could be Super League's big break. It could give Super League the opportunity to get its lifetime returns out of the red. Investors who want to buy in might want to wait until this correction hits lower.

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