Catena Media sells esports brands as cost-cutting intensifies

Catena Media, an affiliate marketing company in the online gaming and betting sector, has sold its esports brands, esports.net and esportsbet.com, to an undisclosed buyer as part of a sweeping cost-cutting initiative.

The sale comes amid a broader restructuring effort designed to streamline operations and address ongoing financial pressures, including a recent 40% drop in EBITDA and shrinking revenues in key markets.

The company confirmed the divestment of its esports assets, which had gained significant traction internationally over the past two years, particularly through esports.net’s expanded organic reach.

However, volatility in the esports vertical, including reduced operator spending and challenges from recent Google algorithm changes, contributed to a decline in traffic and monetisation, prompting Catena Media to shift its strategy.

In a press release, Catena Media outlined that these measures are part of a larger efficiency drive to secure long-term profitability and focus on high-potential growth areas.

The company has also implemented layoffs, reducing approximately 50 roles and removing a layer of senior management to save €4.5-5 million (£3.7-4.2 million) annually.

Catena Media’s leadership emphasised that these steps are necessary to ensure the business remains competitive in a rapidly changing market environment.

The company’s annual report noted that a transition is underway from flat-fee sales to a performance-based model in the esports segment, aligning with industry trends toward sustainable and mutually beneficial partnerships.

Catena Media’s recent moves also include the sale of other international assets, such as its UK, Australian and Italian businesses, as it refocuses on the North American market.

The company continues to explore opportunities in regulated markets and expand its product offerings, but the sale of its esports brands marks a significant shift in its portfolio and strategic direction.

The full impact of these changes remains to be seen, as Catena Media navigates a period of transition and adapts to evolving market dynamics.