The popular eSport league has been purchased by one of the biggest gaming publishers.
It has become a buzz in the eSports scene that the once premiere competitive gaming organizer Major Sports Gaming may be gone for good. It has been revealed that one of the popular eSports league in North America, Major League Gaming has been acquired by Activision Blizzard, the publisher behind popular game franchises such as Call of Duty, Destiny, World of Warcraft and Starcraft.
According to reports from eSports Observer, they acquired majority of MLG’s assets for $46 million.The said buyout has been approved by MLG’s board of directors last December 21, 2015.It has been reported that the $31 million from the $46 million were paid via combination of cash and certain liabilities, the remaining $15 million was put on pending for any indemnification claims.
This however made some of the stockholders unhappy, as reports indicated that the sale is not enough to cover stock liquidation for all stockholders of MLG, as only certain number of stockholders can receive any benefits from the sale. As quoted from the eSports Observer article:
Like us on Facebook to win monthly gadget giveaway
Stockholders not in these categories are largely meeting the decision in disbelief. Some speculate that the majority of the sale will go towards paying off MLG’s debts, leaving little to go around for the remaining stockholders. MLG has filed for multiple debt financing rounds this year alone, for a sum of over $6 million. “I got fucked on stock,” said an affected stockholder, who wanted to remain anonymous.
Activision Blizzard has been preparing for the eSports scene, it has been noted that former MLG co-founder Mike Sepso left his own company in October of 2015 to join Activision Blizzard’s very own eSports division. This can be a good move for acquiring MLG as most of Activision Blizzard’s games are now a staple for several eSports leagues, such as Call of Duty, Starcraft and Heroes of the Storm. It has also been reported that the current CEO of MLG, Sundance DiGiovanni has been replaced my former CFO Greg Chisholm.
Call of Duty, esports, Major League Gaming