002 Roblox M&A and streamer universities
Gen Alpha/Z news and trends for investors
This newsletter is the by-product of various conversations that Max and I have internally at LFG Holdings as we look at investment opportunities emerging from new Generation Z and Alpha behaviors.
Gen Alpha/Z news and trends for investors
Voldex acquires Brookhaven
Not the first significant M&A in the Roblox space (Embracer acquired Bloxburg for a rumoured $100m in 2021) but possibly the biggest so far as Raine, Shamrock and Ares (!) back what must have used a significant chunk of capital [LINK]
Are kids-focused podcasts the next Gen Alpha medium?
The origin story on the Kids Short Stories podcast, which is now doing 1m downloads/month. Podcasts are probably eating radio but maybe it all gets eaten by AI-generated content? [LINK]
The Gen Z definition of gambling is investing? Or the other way around?
Robinhood is a good example of a company shaped by new behaviors emerging from Gen Z audiences: a quarter of their audience is under 27. Its stock is already the best performer year-to-date in the MSCI World Financials Index. [LINK]
Education for streamers
Kai Cenat wants to set up a “streamer university” by renting out a college and bringing in major hitters like MrBeast and Mark Rober to teach classes. A logical expansion of the creator house concept and feels like it could be enormously popular (and chaotic). [LINK]
How the NBA is responding to Gen Alpha behaviors
The major sports associations were never going to give up on younger generations but it means they’re contemplating some increasingly radical changes. Sports rights deals will look very different inside a decade. [LINK]
Gen Alpha/Z Datapoints
SuperAwesome’s State of Alpha report on the tech, economic and cultural trends shaping Gen Alpha. One of the best we’ve seen. LINK
Patreon’s State of Create report on creators and consumers LINK
Reddit Q4/FY24 shareholder letter LINK
Roblox Q4/FY24 shareholder presentation LINK
Gen Z trends in Africa LINK
Sector investment and M&A
Pocket Worlds has acquired AI-driven UGC developer Infinite Canvas (19m MAUs across Roblox and Discord) to enhance its Highrise platform, which serves as a creative virtual world for young adults who have outgrown Roblox. [LINK]
Voldex acquires Roblox-developer Brookhaven for a rumoured $150m. David Taylor on the financial logic behind the deal [LINK]
Rocket Youth raises $100m from Mav Carter and others to expand in the kids sports sector [LINK]
| LFG Holdings is a demographically focused holding company investing in minority, majority and special situations that are fuelled by emerging behaviors from Generation Alpha and Z |