Activision Blizzard purchases large portion of Major League Gaming for $46 million *updated*

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While Major League Gaming (MLG) has been a huge part of the North American eSports scene since its formation in 2002, it seems all things may come to an end in the next few months. While the company has amassed a huge debt over the years in the range of $31 million, it’s been reported by eSports Observer that Activision has entered into an agreement to purchase a large majority of MLG’s assets for a sum of $46 million.

The deal supposedly took place on December 21st and was authorized by MLG’s board of directors. The $46 million deal allows Major League Gaming to pay off its $31 million, and the other $15 million to be held in escrow pending any indemnification claims that may arise from the sale. This deal does come to a shock to many of the shareholders who received a letter of decision the following day, many who won’t be seeing any money from the deal.

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 f–ked on stock,” said an affected stockholder, who wanted to remain anonymous.

The finalized deal will also see CEO Sundance DiGiovanni removed from his role and replaced by Greg Chisholm, MLG’s former CFO.

The move was done as a “corporate action taken without a stockholders’ meeting by less than unanimous written consent of our stockholders,” allowed under Section 228(e) of the Delaware General Corporation Law.

Neither side has confirmed the deal yet, Activision confirmed the deal this afternoon with a press release:

Bobby Kotick, Chief Executive Officer of Activision Blizzard, said, “Our acquisition of Major League Gaming’s business furthers our plans to create the ESPN of esports. MLG’s ability to create premium content and its proven broadcast technology platform – including its live streaming capabilities – strengthens our strategic position in competitive gaming. MLG has an incredibly strong and seasoned team and a thriving community. Together, we will create new ways to celebrate players and their unique skills, dedication and commitment to gaming. We are excited to add Sundance and the entire MLG esports team to our competitive gaming initiatives.”
The acquisition also reveals that MLG will continue to operate MLG.tv, MLG Pro Circuit and GameBattles platforms normally, it also vastly improves Activision Blizzard’s reach in the eSports realm by adding proven live streaming capabilities and technologies to the Activision Blizzard Media Networks division. While Activision Blizzard has teamed up with MLG rival ESL for this years Call of Duty Championships it also gives them a better platform for Hearthstone and upcoming releases Overwatch, Heroes of the Storm.

Source: eSports Observer

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Chris Del Castillo
Chris Del Castillo 2588 posts

Growing up Chris watched a lot of the original Saturday morning cartoons and developed a love for arts and animation. Growing up he tried his hand at animation and eventually script writing, but even more his love of video games, anime and technology grew.