Pires's Pluto Digital merges with Maze Theory to form Emergent Entertainment, focused on Web3 gaming
( ), a holding company focused on next-generation technology, updated markets on its investee Pluto Digital.
Following a successful JV earlier in 2022, Pluto has now merged with Maze Theory Ltd, a London-based digital entertainment studio. The resulting entity is Emergent Entertainment, a new entertainment company focused on "bringing audiences and storytellers together by harnessing emerging technologies".
Pluto is a Web3 technology company with a focus on the metaverse, blockchain gaming, and NTFs. It has been working with Maze Theory on developing games that incorporate token economics. Previously, Pluto had acquired 40% of Maze Theory and set up a JV called Emergent Games Ltd.
Pluto has now agreed to acquire the remaining 60% of Maze forming the aforementioned Emergent Entertainment. The consideration will be the issue of 151m new shares in Pluto, with a reference price of 6p/share.
Additionally, former executive VP of Sony Interactive Entertainment/PlayStation Simon Rutter has now joined Emergent as Chairman, alongside former CEO of Maze Theory Ian Hambleton. Simon Rutter spent 25 years at PlayStation, with the last 10 years in senior international leadership roles.
Emergent can now benefit from the experience of 60 developers and executives from the two merged entities. The business will comprise of three divisions: Emergent XR (focused on developing VR games), Emergent Web3 (focused on the development of Resurgence, a free-to-play Web3 game using token economics), and Emergent Networks (digital assets owned by the company including NFTs).
Nicholas Lee, Director of Pires, commented:
"We are pleased to note the ongoing developments at Pluto, which is making good progress towards becoming a next-generation entertainment company, with a specific focus on Web3. This is a sector where significant growth is expected, particularly in the form of VR video games."
View from Vox:
Following Pluto's excellent performance in 2021 and 2022, the company has now made the right decision to consolidate its projects by fully acquiring partner Maze Theory. The new entity, under the leadership of Simon Rutter and Ian Hambleton who have decades of gaming and next-gen technology experience, should deliver even better results for Pires in the rapidly growing Web3/digital tokens gaming space.
The proposed valuation of Emergent Entertainment is in excess of US$65m, and the company is targeting an IPO in the near term.
As of 30 June 2022, Pires' equity holding in Pluto was valued at c. £2m based on a price of 6p/share - the same price at which the company's most recent fundraising took place, and the price at which Pluto's corporate transaction with Maze Theory was realised. This represents a significant uplift on Pires' initial investment in the sector.
Pires' portfolio valuation increased 27% to £9.4m in 1H22 half-on-half compared to £7.4m on 31 December 2021. Similarly, the company's NAV increased 20% half-on-half to £8.7m. Pires is currently trading at a significant 42% discount to its NAV per share of 5.23p.
Previously, Pires had reported a £1.5m profit rebound and a 147% increase in NAV in its FY21 update.
Pires expects to see additional realisations or liquidity events from its investment portfolio in the coming months.
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