Motorsport Games Buys Back Stock to Equalize Shareholder Voting Power

2026-04-28 companies

Miami, Monday, 27 April 2026.
Following a recent surge in profitability, Motorsport Games repurchased over 900,000 shares, retiring its special 10-times voting stock to grant equal voting power to all shareholders.

Eliminating the Dual-Class Structure

In a decisive corporate governance shift announced on April 27, 2026, Motorsport Games Inc. (NASDAQ: MSGM) executed a repurchase of 904,395 shares of Class A common stock from its founding investor, Driven Lifestyle Group LLC [1][2][3][4][6][7]. The transaction, representing a total capital deployment of 3.717 million, was priced at $4.11 per share, a figure derived from the average closing price over the five days preceding the agreement’s execution [1][2][6][7]. A critical component of this deal is the complete retirement of the company’s Class B shares [1][2][3][4][6][7]. Previously, these Class B shares granted a 10-to-1 voting advantage over Class A shares [1][2][3][4][6][7]. By extinguishing this dual-class structure, Motorsport Games has leveled the playing field, ensuring that every remaining share now carries equal voting power [1][2][3][4][6][7]. Driven Lifestyle Group will, however, retain a minority holding in the racing game developer [1][3][4][6][7].

Aligning Talent and Expanding the Ecosystem

Beyond restructuring its voting rights, Motorsport Games is actively moving to secure the human capital necessary for its long-term vision. Concurrent with the share repurchase, shareholders approved an expansion of the company’s employee equity plan [1][2][3][4][6][7]. While the specific numerical increase in available awards was not disclosed [1], the mandate is clearly aimed at providing stock-based compensation to reward and retain key talent within the organization [2][3][4][6]. Additionally, during the 2026 Annual Meeting of Stockholders, approval was granted for the exercise of warrants originally issued in 2024 as placement agent compensation [3][7]. This allows for the purchase of up to 949,310 shares of Class A common stock at exercise prices of $2.17 and $2.17125 per share [3][7].

Sources

Corporate Governance Share Repurchase