Motorsport Games Inc. (NASDAQ:MSGM) shares galloped Thursday on today’s announcement of the sale and transfer of NASCAR Team Properties’ (NTP) exclusive license for NASCAR® themed simulation-style console racing games.
The sale and transfer, approved by NTP, will see the license transfer from 704Games LLC, a wholly-owned subsidiary of Motorsport Games, to iRacing.com Motorsport Simulations, LLC who will begin developing the next NASCAR console game.
“After careful consideration, it became apparent that it is in the best interest of Motorsport Games to concentrate our resources around alternative assets and revenue growth opportunities. We believe that this is a continued shift toward quality,” said Motorsport Games CEO Stephen Hood.
“This sale to iRacing, a preferred NASCAR partner, is expected to be beneficial to all parties. We believe it will allow us to rebalance our immediate cash needs, reduce our contractual and financial obligations and double-down on near term revenue generating releases already in advanced development,” continued Hood. “We would like to thank our partners at NTP and fans of the franchise over the years and wish iRacing the best with their future plans.”
Current NASCAR titles, including NASCAR Heat 5, which recently received the “Next-Gen Car Update” DLC, and Nintendo Switch title NASCAR Rivals will remain supported by Motorsport Games and available for the remainder of 2023 and throughout 2024.
Shares in MSGM hit the accelerator 71 cents, or 20.8% to begin Thursday at $4.12.
