AUSTIN, Texas - Grom Social Enterprises, Inc. (NASDAQ: GROM), a media and entertainment company, has announced its intention to acquire Arctic7, a provider of game development and virtual production services.
The Florida-based company, known for its child-friendly social media and content, has entered into a non-binding letter of intent to purchase Arctic7 to enhance its portfolio of entertainment options.
Arctic7, established in 2022, specializes in full game and co-development services, as well as owning intellectual property within the gaming industry. It also offers virtual production services for the movie and TV industry.
The acquisition is part of Grom's strategy to extend its reach into gaming and virtual production, complementing its existing catalog of original intellectual property and its social media platform for kids.
According to Arctic7 CEO Igor Efremov, the partnership with Grom will enable the company to pursue its vision of becoming a leader in the gaming and film & TV space more vigorously. Grom CEO Darren Marks echoed the sentiment, expressing enthusiasm for the potential integration of Arctic7's expertise into Grom's expanding entertainment ecosystem.
Upon completion, Arctic7 will operate as a division within Grom, continuing to deliver engaging experiences for players and partners. The two companies plan to explore partnership opportunities and titles that may arise from the acquisition.
Arctic7 executives will attend GDC 2024 in San Francisco to meet with press, client partners, and prospects to discuss business development and acquisition opportunities that align with Arctic7's offerings.
This expansion move by Grom Social Enterprises is based on a press release statement and represents the company's ongoing efforts to become a leading entertainment provider in the intersection of game development, co-development, virtual production, and transmedia IP extension.
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