Rivalry Corp. is pulling back sharply on its day-to-day business as its board considers what comes next for the company.
The Toronto-based online betting and gaming operator said Friday (February 13) that directors have signed off on a major scale-down of operations. The move comes after months of uneven performance that have put pressure on the business and forced leadership to rethink its direction.
Effective immediately, Rivalry has begun cutting costs across the organization, which includes a significant reduction in staff and other operating expenses. The company has also halted all player activity on its betting platform. Customers are still able to withdraw funds in the normal course, but no new bets can be placed and the platform is otherwise inactive until further notice.
Rivalry Corp strategic review unfolds as it unveils cuts
Behind the scenes, the board has been talking with outside parties about potential transactions. Executives cautioned that there is no certainty any agreement will materialize, and no promise that the company will eventually return to operating at its previous scale. Options on the table range from selling specific assets to pursuing a broader corporate deal, restructuring, or another strategic path.
“However, in light of recent performance volatility, the Board has determined to materially reduce the scale of operations while assessing whether a strategic transaction or other alternative can be advanced,” the company said in its statement.
Rivalry said the pullback is intended to conserve cash and give the business more time to evaluate its choices. It also warned that, given the smaller operating footprint and ongoing review, there is no assurance a transaction will be completed or that the company will continue in its current form.
The announcement follows a difficult stretch. In recent quarters, Rivalry has reported fluctuating results and shifting investor sentiment. Earlier coverage of the company’s second-quarter results pointed out aggressive expense cuts and a push toward a revamped business model focused on higher-value players and a leaner cost base. Management, at the time, framed those changes as part of a broader reset aimed at stabilizing performance and extending its financial runway.
Rivalry wholly owns Rivalry Limited, a regulated online wagering business offering esports betting, traditional sports wagering, and casino games. The platform operates under an Isle of Man gaming license and holds an internet gaming registration in Ontario.
Investors reacted swiftly to Friday’s news, sending shares down sharply amid fresh uncertainty about the company’s future. Rivalry said it will update the market if there are material developments, but it has not provided a timeline for when full operations might resume or when its strategic review could conclude.
Featured image: Rivalry Corp
The post Rivalry Corp sparks shutdown fears as it scales back operation appeared first on ReadWrite.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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