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Intel Inks New $100M Deal With ESL, Ups the Game in Esports
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Intel (INTC - Free Report) recently expanded its alliance with ESL, the largest esports powerhouse in the world. The companies entered into a three-year agreement, signing a $100-million pact, in a bid to grow its foothold in the electronic sports or esports domain.
Per the terms of the deal, Intel’s latest high-performance Core i9 and Xeon processors plus its new trial technologies including 5G among others will be leveraged by ESL through 2021.
Intel financed “Intel Extreme Masters” (IEM) league, which is supported by ESL. It is slated to enter its 14th tournament, marking the longest-running professional gaming circuit. Furthermore, a new IEM tournament in China will get converted into a discrete stand-alone event.
Both companies are optimistic about the extension of the approximately 15-yearold partnership. The companies also attempt to venture into new esports events and international tournaments including the recently announced Intel Grand Slam game format.
Investment in Growing Esports Industry: Smart Move
The growing popularity of esports is anticipated to boost the deal’s prospects. In fact, per Newzoo data, the esports domain is envisioned to reach $1.4-$2.4 billion by 2020. For 2018, Newzoo estimates the market to grow 38% year over year to $905.6 million.
Increasing investments in forms of sponsorship, media rights and advertising aimed at enhancing fan and player engagement, are anticipated to widen esports’ audience base. Moreover, growing consumer spending on franchisee merchandise and tickets is expected to accelerate growth in the esports industry.
Notably, per ESL data, approximately 15,000 visitors on average attended 10 notable esports events daily in 2018. Further, IEM and ESL One esports events witnessed a footfall of 169,000 fans onsite and recorded approximately 3.4 billion minutes’ esports content watched online in 2018.
Notably, ESL and AT&T (T - Free Report) collaborated in the past as well in an attempt to explore the aggressive video-gaming arena. With the alliance, AT&T has become the Official Telecommunications and Mobile Gaming Partner of ESL North America.
The increasing allegiance of tech companies to improve gaming formats (at different levels) with innovative technologies bodes well. We believe the stretched partnership will provide Intel with an opportunity to upgrade its competitive edge in the rapidly growing esports market.
To Conclude
The robust adoption of the company’s CPU and GPU processors are expected to bolster Data Center Group or DCG revenues. In fact, strong demand for Intel's high-performance products (including Xeon Scalable) drove ASPs, evidently favoring the top line in turn. In third-quarter 2018, DCG revenues rose 25.9% year over year and 10.6% sequentially to $6.14 billion.
Further, the greater number of threads and cores in the recently introduced Intel Core i9-9900K gaming processor, is anticipated to aid the semiconductor giant to improve its competence against peers like Advanced Micro Devices (AMD - Free Report) .
Zacks Rank & Other Key Pick
Intel sports a Zacks Rank #1 (Strong Buy). Twitter, Inc. is also another stock worth considering in the broader technology sector, flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Twitter is currently pegged at 22.1%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Intel Inks New $100M Deal With ESL, Ups the Game in Esports
Intel (INTC - Free Report) recently expanded its alliance with ESL, the largest esports powerhouse in the world. The companies entered into a three-year agreement, signing a $100-million pact, in a bid to grow its foothold in the electronic sports or esports domain.
Per the terms of the deal, Intel’s latest high-performance Core i9 and Xeon processors plus its new trial technologies including 5G among others will be leveraged by ESL through 2021.
Intel financed “Intel Extreme Masters” (IEM) league, which is supported by ESL. It is slated to enter its 14th tournament, marking the longest-running professional gaming circuit. Furthermore, a new IEM tournament in China will get converted into a discrete stand-alone event.
Both companies are optimistic about the extension of the approximately 15-yearold partnership. The companies also attempt to venture into new esports events and international tournaments including the recently announced Intel Grand Slam game format.
Investment in Growing Esports Industry: Smart Move
The growing popularity of esports is anticipated to boost the deal’s prospects. In fact, per Newzoo data, the esports domain is envisioned to reach $1.4-$2.4 billion by 2020. For 2018, Newzoo estimates the market to grow 38% year over year to $905.6 million.
Intel Corporation Revenue (TTM)
Intel Corporation Revenue (TTM) | Intel Corporation Quote
Increasing investments in forms of sponsorship, media rights and advertising aimed at enhancing fan and player engagement, are anticipated to widen esports’ audience base. Moreover, growing consumer spending on franchisee merchandise and tickets is expected to accelerate growth in the esports industry.
Notably, per ESL data, approximately 15,000 visitors on average attended 10 notable esports events daily in 2018. Further, IEM and ESL One esports events witnessed a footfall of 169,000 fans onsite and recorded approximately 3.4 billion minutes’ esports content watched online in 2018.
Notably, ESL and AT&T (T - Free Report) collaborated in the past as well in an attempt to explore the aggressive video-gaming arena. With the alliance, AT&T has become the Official Telecommunications and Mobile Gaming Partner of ESL North America.
The increasing allegiance of tech companies to improve gaming formats (at different levels) with innovative technologies bodes well. We believe the stretched partnership will provide Intel with an opportunity to upgrade its competitive edge in the rapidly growing esports market.
To Conclude
The robust adoption of the company’s CPU and GPU processors are expected to bolster Data Center Group or DCG revenues. In fact, strong demand for Intel's high-performance products (including Xeon Scalable) drove ASPs, evidently favoring the top line in turn. In third-quarter 2018, DCG revenues rose 25.9% year over year and 10.6% sequentially to $6.14 billion.
Further, the greater number of threads and cores in the recently introduced Intel Core i9-9900K gaming processor, is anticipated to aid the semiconductor giant to improve its competence against peers like Advanced Micro Devices (AMD - Free Report) .
Zacks Rank & Other Key Pick
Intel sports a Zacks Rank #1 (Strong Buy). Twitter, Inc. is also another stock worth considering in the broader technology sector, flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Twitter is currently pegged at 22.1%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>