Midnight Gaming Corp IPO - What You Need to Know

Hey there! Let’s cut through the noise. Midnight Gaming isn’t just a game studio anymore – they’re morphing into a mini-conglomerate. Here’s what everyday investors need to know:

1. What does Midnight Gaming Corp actually do?

Surprise! They’ve expanded into three main areas:

• Video Games: Their original business (Shadow Arena, VR projects)
• Real-World Events: Owns OshKosh Arena in Wisconsin (hosts sports, concerts)
• Advertising Tech: A platform called GTV that places ads on streaming services

They’ve also acquired businesses in oil/gas, car dealerships, and real estate, though the company hasn’t shared how these fit into their long-term strategy.

2. How do they make money?

• Arena: Earns from tickets, concessions, and events (~$5M/year historically)
• GTV Ads: Takes a cut from ads placed on streaming platforms
• Games: Relies on in-app purchases and subscriptions

But here’s the twist:

• 2022 full-year revenue: $925,160
• First 9 months of 2023: $214,756
• First 9 months of 2024: $274,076 (28% growth vs same period last year)

⚠️ Red flags:

• Game revenue appears to be shrinking as they focus on new ventures.
• The company hasn’t clarified why total revenue remains under $1M/year despite the arena’s reported $5M/year earnings. This could signal recent acquisitions or financial complexities.

3. What will they do with the IPO money?

• Buy more companies: Over 50% earmarked for acquisitions (no specific targets named).
• Arena upgrades: New seats, better tech for events
• Boost GTV ads: Hire more sales staff
• Pay debts: 15% to clear old loans

Notably, game development is no longer a priority – a shift from earlier plans.

4. Biggest risks

• “Shiny object syndrome”: Can they manage games, oil, arenas, and ads at once?
• Tiny arena: OshKosh seats 4,200 – 50x smaller than Madison Square Garden.
• Ad platform gamble: Competing with Google and Meta is brutal.
• Acquisition chaos: Buying unrelated businesses often leads to messy integration.

5. How do they compare?

• Games: A speck next to giants like Epic Games (Fortnite)
• Arenas: A local player vs Madison Square Garden’s global brand
• Ads: A startup challenging Google’s $200B ad empire

6. The Bottom Line

Midnight Gaming is a high-risk bet on a CEO who loves deals more than focus. The arena and ad tech could pay off… or drain cash.

Consider investing only if:

• You’re comfortable with extreme volatility
• You trust management’s ability to juggle wildly different businesses

P.S. That $2B valuation is eye-popping for a company making <$1M/year. Proceed with caution!

Final note: Midnight Gaming’s IPO filing leaves many questions unanswered – especially about how their new acquisitions will work together. When in doubt, ask: “Would I buy this if it weren’t an IPO?”

This guide reflects available data as of [insert date]. Always do your own research before investing.