MGT Acquires DraftDay and Keeps Cash on Hand to Quickly Pay Players

 DraftDay pic
DraftDay
Image: DraftDay.com

With an MBA from the University of Southern California with an emphasis in finance and entertainment, Bill Asher previously served as President of Playboy Entertainment Group and ultimately founded, owned and operated Califa Entertainment Group. Now the co-owner and co-chairman of Vivid Entertainment, Bill Asher overseas many facets of the entertainment business for the company including its on-line business. In 2014, Vivid Entertainment partnered with online gaming company MGT Capital Investments, Inc., the operator of DraftDay.com.

When MGT acquired DraftDay, it brought in its management team to handle operations and received about $600,000 in cash and 100,000 shares of stock. As one of the largest fantasy sports online platforms, DraftDay produces significant revenues in the online gaming space. Some of its major competitors include DraftKings and FanDuel, but DraftDay differs by keeping cash on hand to pay out its players.

On a user level, DraftDay customers draft sports players to daily fantasy teams in the fields of professional baseball, basketball, hockey, and football. At the end of the day, points are awarded based on the player’s performance, and cash awards are given to those who achieve the highest team scores. Bill Asher intends to use the skills he acquired running his internet business to license and create a new fantasy sports product.

Market Shares of Adult Entertainment – Cable, Satellite, and the Web

Vivid Entertainment pic
Vivid Entertainment
Image: vivid.com

Entertainment industry entrepreneur Bill Asher serves as Co-chairman and Co-owner of Vivid Entertainment in Los Angeles. Bill Asher worked for Playboy Entertainment Group and then founded Califa Entertainment. As the owner and operator of Califa, Bill launched The Hot Network, The Hot Zone and VividTV. Bill then initiated the merger of Califa and Vivid Video to create Vivid Entertainment.

In the year 2000, telecommunications giant AT&T made headlines by adding The Hot Network, a source for hardcore adult content, to its digital cable offerings. This was part of a rapidly growing trend toward expanding pay-per-view offerings for adult viewers that were largely led by satellite television providers. At the time, satellite providers were enjoying $223 million in annual profits from adult film rentals and sales. Cable providers such as AT&T began offering similar services to keep up, as their share of the adult market sat at around $186 million.

Today, adult entertainment represents a multi-billion dollar industry in the United States. According to MSNBC, the industry generated upwards of $10 billion in 2015 alone. This figure continues to rise, despite widespread concerns about piracy on the internet. Adult film companies like Vivid Entertainment continue to profit from DVD sales, cable and satellite offerings, and continually-expanding adult platforms online.