Contagious Gaming: Already in Play?
Quick update on yesterday’s article on Contagious Gaming (TSXV:CNS) titled Wanna Bet? Contagious Gaming Builds Tech for Fun and Profit:
We looked at the massive online gaming industry and Contagious’ plan of attack. There is a possibility that Contagious, a fairly new public company, is following the route set by Amaya Inc. and is already on the acquisition trail.
Here’s the reason for my suspicion. It begins with an error in yesterday’s article. I wrote, “A football match is 90 minutes long. GoalTime divides the game into 15 segments of 5 minutes each.” For a guy with a computer science degree, I sure did a lousy job on my math. Dividing a game of 90 minutes into 5 minute segments would result in 18 segments, not 15. Knucklehead.
So yesterday I began emailing various company representatives to correct my mistake and get a better understanding of exactly how GoalTime works. To date, no one from the company, except for an outside shareholder, has gotten back to me.
Not a word from the management team. Not a word from a director. Not even a “Gee, we’re busy we’ll get back to you.” No email, no phone call, no text.
Either no one on the management team cares enough to respond, or something is going on that blacks all of them out from talking to me or to anyone.
If you look at Amaya’s track record, its incredible growth was driven by M&A activity. With a public treasury, Contagious could be following the same route.
Add this to the rumours around Intertainment Media Inc. (TSXV:INT), whose tag line is “We help brands engage by developing, nurturing, and investing in new technologies”. The market commentary is that Intertainment might have run up against a wall – it will be unable to effectively grow larger as a stand-alone company and requires other revenue streams for growth. Layering Contagious’ new technology with Intertainment’s services could be win-win.
Regardless of what happens with Intertainment, if anything, I’m guessing Contagious’ management is going to emerge from blackout in the next few days with news.
Mr. Clausi is an experienced investment banker, executive, director and shareholder activist. A graduate of Osgoode Hall Law School called to Ontario's bar in 1990, ... <Read more about Peter Clausi>