Activision Blizzard has purchased all the assets for Major League Gaming for $46 million. Some investors at MLG were not very happy with the deal as it was conducted without stockholders’ meeting. The news was first reported by eSports Observer and has not been confirmed by any of the companies yet.
According to reports, MLG Co-Founder and CEO Sundance DiGiovanni has resigned from his role. Former CFO Greg Chisholm has taken up the role of CEO after DiGiovanni’s exit.
In decision was taken on December 21 and ALG’s Board of Directors approved the deal for consideration of $46 million.
Treehouse Capital LLC, Ritchie Opportunistic Trading Ltd., Oak Investment Partners and Legion Capital Investments LLC are among major investors in Major League Gaming.
For many years, MLG has remained at the forefront of StarCraft 2, Call of Duty and many other gaming tournaments. With Activision Blizzard taking control of MLG, it is evident that the gaming majors are interested in managing the sporting events on their own. Activision Blizzard has a lot of eSports-ready games in its stable and even more, like Overwatch, set to hit the market this year.
eSports Observer has also published a part of the agreement signed between both parties. The agreement was sent to other stakeholders on December 22, according to eSports Observer website.
Major League Gaming was started by DiGiovanni and Mike Sepso in 2002. Sepso joined Activision Blizzard in October 2015 as Senior Vice President of its new eSports division.
In 2014, MLG opened its first professional gaming arena in Ohio. The company also announced its plan to setup a gaming arena in China by 2017.
In October 2015, MLG received a major shock when the company failed to get hosting rights for Call of Duty World League's Pro Division. The company was beaten by ESL.
A HotHardware report informed, “One thing that this purchase could signify is that it's only worth it to create a league or event if you're looking to get bought out, because with game publishers taking things into their own hands with the biggest franchises out there, there's a risk of non-game publishers tasting little success.”
According to a Forbes report on the deal, “MLG selling to Activision Blizzard does make a certain amount of sense. Though MLG has been a huge force in eSports over the past decade, it’s been tougher for them to function as an independent North American eSports power with so many companies assuming direct control of their eSports operations from Blizzard to Riot to Valve.”
Activision Blizzard's current portfolio includes the multimillion-dollar video game franchises of Call of Duty, StarCraft, and Warcraft. As of 2015 it along with rival, Electronic Arts are the only two game publishers in the North America on the S&P 500 Component.
MLG is headquartered in New York City and has held official video game tournaments throughout the United States and Canada. Major League Gaming competitions have been broadcast on television, ESPN.com, and other broadband sites. The company has also been involved in television production and game development.