10:10 AM EDT, 04/04/2024 (MT Newswires) -- Mega Matrix ( MPU ) business is "massively overvalued," with the company's stock value dependent only on streaming app FlexTV, White Diamond Research said in a note to clients Thursday.

Mega Matrix ( MPU ) signed an agreement in November to acquire 60% shares of FunVerse, the owner of FlexTV, the report said.

White Diamond said that with competition from TikTok, YouTube, and many short drama streaming apps, the probability of FlexTV's failure is "high."

FlexTV's popularity is low as it is not listed among the top 100 free applications on the iPhone Apple Store or Google Play, according to the report.

The research firm also said that since the company's management has no prior experience in entertainment or media businesses, there will be no value addition to the FlexTV acquisition.

Mega Matrix ( MPU ) did not immediately respond to MT Newswires' request for comment.

The company's shares were down 7.2% in recent Thursday trading.

Price: 2.60, Change: -0.20, Percent Change: -7.16