Liquid Media Group Ltd. (NASDAQ: YVR) – A Disruptive Company In AI and Cloud Computing.

Potential Buy Out From Major Leaders Like Amazon?

Technology and innovation has never been more important than it is today due to the COVID-19 pandemic. Could you imagine if this pandemic hit before the internet was invented? How would we be able to still function in our day to day lives without the ability to work from home, or communicate, or maintain infrastructure?

There are 2 main tech sectors which have been especially crucial to keeping people not only sane, but also functional and productive: Artificial Intelligence, and Cloud Computing.

While these sectors have been growing for years, it is as if the rise of the COVID pandemic gave them an adrenaline shot, while other industries collapsed. However, not only have these 2 tech sectors benefited and grown even faster than before due to COVID, but they have also been keeping the world afloat, in each unique way.

AI Is Prospering….And Revolutionizing The World

The widespread adoption of Artificial Intelligence has been one of the biggest stories of innovation over the 2010s, and its continuous growth and widespread adoption will revolutionize the world in the 2020s. Every tech giant of today- Amazon.com, Google, Apple, Microsoft, Facebook, IBM, Tesla-is investing significant time, money, and resources, to develop AI, and make it more widely used and accessible. Due to these tech giants devoting so many resources to the growth of AI, AI is becoming widely used in every industry, from automotive, healthcare, retail, finance, and manufacturing^[13].

AI is powering the innovation of self-driving cars, is developing innovative and life-saving medical equipment, and is proving to be a valuable commodity to help “prevent, mitigate, and contain” the coronavirus^[14]. Alibaba, for example, developed a diagnostic algorithm that can detect new coronavirus cases with a CT scan, and Canadian start-up BlueDot predicted the outbreak of COVID with AI technology months before anyone else^[15].

The AI market is already expected to nearly double over the next 1-2 years, with a CAGR of 42.2% over the next 7 years. With the way the world has changed over the last 6 months, AI is expected to be “infused virtually to every apparatus and program” and has already proven to be the significant revolutionary element of this modern era^[16].

Cloud Computing- A Key To Worldwide Infrastructure Today And Tomorrow

Cloud computing has been a fledgling industry for years. However, just like Mobile Gaming, VR, and AI, it has grown in size and importance rapidly due to COVID-19.

Cloud computing has proven to be very important to worldwide infrastructure, and keeping day to day operations as normal as possible during the pandemic. This sector deals with on-demand availability of computer based resources, namely the storage of big data, communication services, infrastructure, and computing power. Cloud computing was already becoming widely adopted in the decade before coronavirus. However, according to the MIT Technology Review, “the key to survival during covid-19 has been a rapid revamp of IT infrastructure in search of new business models and ways of working.^[17]”

Liquid Media Group Ltd. (NASDAQ: YVR) -A Company Offering Strong Growth To Invstors

Wouldn’t it be nice to invest in a company that could easily excel in these sectors? Fortunately, there is a company that exists-Liquid Media Group (YVR). YVR is a Vancouver, Canada based firm, with a strong footprint in the future of this revolutionary digital age.

YVR operates as a media and entertainment company, and produces content for various platforms, including film, TV, gaming, and VR through its network of shared services. It also develops mobile, console, and desktop downloadable games, and has initiated several strategic partnerships in the cloud IT infrastructure space as well^[18].

Investors Love Their Success In Using Platform To Disrupt And Form Strategic Partnerships In Media

Over the course of the last year, Liquid Media has formed several strategic partnerships which has caused its business to grow. Liquid Media at its core is a multi-pronged tech company. However, most of its recent successful partnerships have been in the streaming and VOD space.

Just yesterday, a partnership was announced with animated content producer Arcana Studios. This partnership is expected to grow Liquid’s Reel house Animation platform with more original content, and further disrupt the VOD and “fragmented” streaming landscape^[19].

Furthermore, Liquid Media just last month formed a partnership with digital agencies Invoke and Arkitek/Creative to further transform its streaming platform. This was a major catalyst in putting Liquid Media on the map, because Invoke is the same company which created Hoot suite. Hoot suite is a revolutionary social media management platform, “which is now used by over 800 Fortune 1000 companies, has a current user base upwards of 15 million and an estimated valuation of USD$1-billion^[20].” The market clearly liked this move- Liquid Media’s stock increased approximately 59% at the open of the trading day, and had to be temporarily halted because investors couldn’t get enough!

The Invoke partnership is also expected to grow and develop Liquid Media’s core tech businesses as well. Invoke is also known for making quantum computing accessible for industry D-Wave, and also brought social gaming to viewers of NBC’s The Voice. Invoke clients also include Viacom, Toyota, the NHL, the BBC, and the Food Network^[21].

Wes Deboer, Director of Technology at Invoke said:

“We’re excited to work with this community…as we uncover ’what comes next‘ and launch Liquid’s digital streaming platform reimagined for evolving consumer behavior and engagement in today’s new world^[22].”

The other strategic partners, Arkitek Creative and Crafted INK Consulting, may be even more crucial to developing Liquid Media’s multi-pronged platform, as their clientbase includes Walt Disney, Netflix, LucasFilm, Sony Picture Imageworks, Universal, Paramount and the Sustainable Production Forum^[23].

“Liquid is building the next destination for the creative community – from new and established festivals plus storied filmmakers to first-time content creators – and their audiences,” said Joshua Jackson, Chairman of Liquid Media. “The combination of expertise represented across our team and partners is tremendously exciting,” Jackson continued, “we believe this talented group will help us bring the best tools to market by leveraging innovative technology that further enhances our streaming platform. Our aim is to release an incredibly vibrant offering that will drive us into the future while keeping both the filmmaker and the shared experience at the core.”

Further Growth In The VR and Digital Landscape

Liquid Media’s recent successes have been more media and content oriented, but don’t forget- they are a TECH COMPANY at their core. Just 2 weeks ago, they retained Novus Merchant Partners as its Capital Markets Advisor. The sole purpose of this alliance, is for Novus to act as financial advisor to Liquid on strategic M&A transactions, as well as to assist Liquid in “developing, implementing and executing on its business strategy of consolidating and vertically integrating intellectual property (IP) rights with production capabilities to leverage innovative technology as well as owned IP into full media franchises.^[24]”

Furthermore, Liquid Media joined forces with well known VR company, YDX Innovation to add more VR content to its streaming platform, something which is sure to be a revolutionary union. The goal of this partnership is for Reel-house, Liquid’s streaming platform, to be the main source of VR films and experiences, and to make VR more accessible to the average consumer. Daniel Japiassu, CEO of YDX Innovation said:

“Right now, access to VR films is mostly done in location-based centers or at film festivals like Venice, Cannes or TIFF. YDX is immersed in the VR community, and can provide great content to Reelhouse VR. We see this as an opportunity to strengthen our relationship with Liquid, a company that we love to work with, while bringing innovative stories to audiences.^[25]”

With this partnership, not only will Liquid’s content grow, but their VR content could be more accessible with less barriers to entry.

Liquid’s Gaming and Cloud Infrastructure May Be Its Most Enticing Offering Of All

Regarding the growth of Liquid’s gaming platforms, Michael Timothy Doyle, the former head of 20th Century Fox Interactive and VP of Production for FoxNext, recently joined the advisory board. Doyle, while with Fox, was responsible for developing Fox’s gaming platforms, including the most significant deal in Fox Interactive history by uniting Ubisoft Entertainment, Lightstorm Entertainment and 20th Century Fox for the video game adaptation of James Cameron’s Avatar^[26]. Doyle also oversaw production of the most successful Alien franchise video game ever made Alien: Isolation^[27].

Additionally, just weeks before Doyle joined the team, Liquid Media acquired cloud gaming IT infrastructure company Open Nuage. This has already proven to be a very shrewd move, and given Liquid Media and even stronger platform to grow its gaming business. On the acquisition, Liquid’s Chairman Joshua Jackson said

“Cloud gaming is an important addition to our existing intellectual property, production capabilities and connectivity for developers. Open Nuage’s platform furthers our mission to provide content creators and entertainment companies worldwide with studio-as-a-service offerings.^[28]”

What This Means For YVR: Tremendous Upside Potential

Liquid Media has proven to be a stock which makes investors very happy on any announcement of good news. Because Liquid has a recent track record of smart, shrewd partnerships, and because Liquid is a conglomerate with so many different offerings that are perfect for the COVID-19 economy, any entrance into this stock could have boom potential.

This is the 1 Year Chart of Liquid Media.

A 37.30% return over 1 year isn’t bad. However, look at how the stock spikes over short bursts of time. Furthermore, look closer below at where the stock is trading over the course of 1 month.

The stock has increased approximately 6.13%, however it is trading sideways, and is currently just around its support level. This means that upon the next piece of breaking news about Liquid’s newest strategic partnership, or newest move, the stock could breakout.

Liquid Media Group’s Management Team Also Has 75+ Years Experience Across Media, Entertainment, and Finance

The company is also led by highly-sought after market leaders, including:

• Joshua Jackson, Chairman – An award-winning actor with major roles in the record-breaking TV seriesDawson’s Creek, in addition to successful films like The Skulls, The Mighty Ducks, Shutter, and more than twenty others.
• Daniel Cruz, CFO and Managing Director – Daniel became one of the youngest Senior Investment Advisors at Canaccord Financial Inc. in 2006. Now he combines his expertise in securities and capital markets with his passion for the entertainment industry.
• Charlie Brezer, President — An entrepreneur with over 15 years of management and leadership experience, Charlie’s aggressive, hands-on, and forward thinking approach in integral to Liquid’s continued success.
• Nancy Basi, Board Member — Nancy brings 25+ years of experience across film, TV, gaming, VFX, animation and VR to Liquid. Currently the Executive Director of Media + Entertainment at the Vancouver Economic Commission, Nancy also serves on the Executive Board of (WIA) Women in Animation Vancouver and is the VP of VRARA Vancouver (Virtual/ Augmented Reality Association).
• Wilson J. Tang, Advisor, Wilson J. Tang is an artist, designer, and entrepreneur who has been working at the forefront of art and technology in film and video games for 20+ years. Wilson is Currently the Creative Strategist at WindSunSky/Skybound, CEO and Chief Designer at Yumebau Inc., as well as serving on the board of advisers for the Intercross Creative Center (icc- jp.com) in Japan since 2001.

• Company Positive Steps: Liquid Media is a young company that has made several smart and savvy decisions and partnerships. Its stock has proven to like these very much, and reacts well to these announcements.
• Its Platform Is Perfect For The COVID-19 Landscape: Liquid is a content creator, a content curator, a tech company, a cloud company, a VR company, and an AI company. If there was a company built on a more perfect combination for the COVID-19 economy, I haven’t heard of it.
• Upside Potential: It’s hard to believe that Liquid Media is only 2 years old with all of its accomplishments. With YVR’s recent stock history and chart analysis, the potential increase with this stock could be massive over the short term, and the long term as well.
• Diverse Platform=Multiple Revenue Streams: This is not your typical startup that is just trying to do one thing or one function, and gambling that it works. This is a company involved in multiple sectors, and provides multiple services. Not only are these growing sectors, but these are diverse sectors as well, and multiple sources of significant income.
• Inflation Risk+Interest Rate Risk=Low: Liquid Media, like many other Canadian companies, has many advantages over competitors- namely in the tech and content space. Canada is known for its stable economy, especially during volatile times such as COVID, and also has a relatively low rate of inflation. “(Canada’s) financial, business and banking policies have shielded its domestic economy from many of the worst excesses of the global economy in recent decades. While it has missed out on much of the speculative growth of the past 30 years, it also has effectively protected itself from many of the worst slowdowns.^[29]”
• Streaming Platform=Catalyst For Growth: Liquid Media is not solely a streaming or content platform, and to only call it that doesn’t do the company justice. However, the way it has leveraged its streaming platform to form alliances, grow its network, and grow all sectors of its business is nothing short of amazing.
• Entrance Into VR and AI=Lucrative: Liquid Media’s utilization of its platform to use more VR, and make it more accessible to the general public will prove to be lucrative and revolutionary. The VR industry was already valued at an estimated $6.1 billion in 2020. But largely due to increased demand from COVID, and the demand of easily available and affordable equipment, the industry is expected to balloon to an estimated $20.9 billion over the next 5 years^[30].
• Entrance Into Cloud Computing Will Grow Its Business: There has been a rapid revamp of IT infrastructure in search of new business models and ways of working. Cloud computing today is powering the world and keeping it functional. With strategic acquisitions such as Liquid’s acquisition of Open Nuage, Liquid Media is taking the rise of Cloud computing, and tailoring it towards its gaming platform.
• Growth of Mobile Gaming Fits Its Business Model: With the addition of gaming guru Michael Timothy Doyle, the former head of 20th Century Fox Interactive and VP of Production for FoxNext, there are no limits to what the company can do with its gaming platform. More people are on their phones than TVs today, and being at the forefront of this trend could spur more growth in the company.
• Lack Of Political Risk: Being a Canadian company once again works in Liquid Media’s favor. Canada, along with being known to be economically stable, is politically stable. Canada has not experienced many of the geopolitical issues, as well as political extremes that are appearing all over the world nowadays. With YVR’s upside, combined with Canada’s stability, it is hard to see the downside.
• Its Business Model Is Tailor Made For Social Distancing: People are spending more time away from each other and isolated which bodes well for the company’s offerings. People are playing more and more games on their phones, there is a higher demand for accessible VR, AI is powering everything nowadays, and cloud computing is the foundation of a remote functional society. Not to mention, people are looking to consume more and more content the more isolated they are.
• Globalization+Networking=Consumer Demand: Along with people being socially distanced, they are now interacting and communicating more remotely and over the internet. With how international and interconnected the world is now, and how the world is consuming content, there is a demand for platforms like Liquid Media Group Ltd. (NASDAQ: YVR).

 

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