Those type of things are really the contributors there. So I think for this year, for 2024, we’re looking at achieving roughly half, roughly half of those synergies here for the calendar year and then the balance of those in the coming months after that.
Drew Crum: Got it. Just any comment on the revenue synergies?
Cris Keirn: Oh, yes, great point. The revenue synergy opportunities are pretty significant. And we haven’t really even built that into that estimate to any great degree because that’s going to take a lot of discussions with our partners, our customers. We think there’s opportunities on two fronts there. Number one, obviously, we have a lot of the same customers today. And we know each other’s business well. And so we do believe there’s going to be opportunities on that front. We also work with some of the same partners from a manufacturing standpoint. So we think there’s cost synergy opportunities there. Again, these will take some time to realize those. But we do see many opportunities there to go and pursue. On top of that, we do see some benefits with our partners.
So we have strong, licensed partners as a combined company across all the first-party manufacturers. And we’ve got a terrific relationship with all three, and we’re looking with the combined portfolio that we now have – it just makes it much more powerful for us as we’re talking to retailers and to licensed partners about what we can offer as a company.
Drew Crum: Okay. Perfect. And then, Cris, this is a follow-up, and you kind of address this in your preamble in response to Sean’s question, but can you discuss what your expectations are for the legacy business in 2024, setting aside PDP, what you’re assuming as far as the core legacy business.
Cris Keirn: Yes, absolutely. In the last call, we talked about we believe our run rate EBITDA – well, we weren’t guiding for 2024; we talked about our run rate EBITDA being $28 million to $33 million – and or $31 million, in that range. And when you look at that run rate, we’ve been able to realize those margin benefits sooner than we anticipated. So when you look at the profile, and we’re running at 14% of revenue from an EBITDA standpoint, those have really come in as we expected and even a bit earlier. So we’re feeling good about how that is coming out. We’re seeing mid- to high digit sort of growth in the core business from a revenue perspective. And we’re seeing significant growth on the profitability side hitting that 14% number.
Drew Crum: Okay. Got it. Thanks guys.
Cris Keirn: Thanks, Andrew.
Operator: [Operator Instructions] Our next question comes from the line of Jack Codera with Maxim. Your line is open.
Jack Codera: Hi, how’s it going? This is Jack Codera calling in for Jack Vander Aarde. Congrats on the acquisition. It seems really exciting. I wanted to ask, given that you have kind of these two new anchor segments between like console headsets as well as the controllers, how should we be thinking about non-console versus console segments? I know in the prior quarter, it was kind of like flight simulation and some of the other PC sensor – accessory segments were kind of really exciting. How should we be thinking about segmentation now?
Cris Keirn: Certainly. Great question, Jack. When you look across the segments, clearly headsets are [ph] – we’ll continue to do quite well there. They’ll continue to be the majority of the business. But not nearly as much as they used to be, right? We’re going to be probably in the 55%-ish range of our business will be console headsets. Controllers – between controllers and the other categories we were running about 20% with our existing controllers business, Flight Sim, PC, all the other categories that we’ve entered into over the last several years here. And so as we’re going forward, you’re going to see a much more balanced portfolio from us and a much more balanced contribution across those different categories. So the controllers will probably be somewhere in the range in total of maybe 25%, 30% off the top of my head here. And then the balance of the rest would be in our PC and Sim categories.
Jack Codera: Okay. That’s very, very helpful. And then I have one more just kind of general industry question. I think you’ve mentioned a bit, but if you factor in historical levels and normal seasonality, can you give me more color on how the retail channel inventories are progressing in the early part of the year? And given the news today about kind of like Dollar Tree and some of these other retail closures, do you expect any headwinds from retail store closures? Thank you.
Cris Keirn: Sure. We’re seeing really good results with our retail partners right now. The channel inventory is in a very good place. I would characterize it as lean and it was lean even in Q4 and coming into Q1. So we’re seeing good replenishments from our partners out there. It’s good to be back in sort of I’d say, more of a normal cadence. Now that we’re done with the pandemic, we don’t have those kind of lumpy inventory issues in the channel anymore as we were trying to unwind that over the last few years. They’re really in a very good place. As far as go forward with retail, we’re really excited about what this transaction means for retailers as well because the amount of products that we’re able to offer retail are across their categories.
We have seen trends of retailers who really consolidating. When you think about gaming, gamers out there, don’t just game on one platform. Nearly everyone is gaming across multiple platforms. And now we have a portfolio that can address all those folks. And so it’s really going to help us from a momentum standpoint with our retail partners, and we’re seeing a good response from the market out there at retail.
Jack Codera: Thank you for the color. Hop back in the queue.
Cris Keirn: Thanks, Jack.
Operator: Please stand by for our next question. Our next question comes from the line of Martin Yang with Opco. Your line is open.
