Activision Blizzard has purchased Major League Gaming for 46 million, Kotaku reports.
Major League Gaming (MLG) has been a popular worldwide e-sport company for many years, hosting video game competitions from many genres on PC and Console. According to Esport Observer, the purchase of MLG by Activision Blizzard was approved and finalized on December 21.
Mike Fahey from Kotaku reported the following:
“An excerpt from the letter reportedly obtained by eSports Observer indicates that $31 million of the $46 million was paid by Activision via a combination of cash and the assumption of ‘certain liabilities,’ meaning Activision assumed some of the MLG corporation’s crippling debt. The additional $15 million is being held in escrow pending any indemnification claims that may arise from the sale.
The reported letter also indicates that the proceeds from the sale will not be enough to cover stock liquidation for all MLG shareholders, with only certain tiers of shareholders receiving benefits from the purchase. As eSports Observer reports, that makes for some unhappy stock owners.
‘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.’ ”
Since most of the MLG competitively- played games consists of Activision Blizzard games, like Call of Duty and Star Craft 2, it seems fitting that they become the new MLG owners. It will be interesting to see if non-Activision Blizzard games, like Super Smash Bros., will continue to be played at these events. Hopefully Activision Blizzard will help the e-sport community grow and improve.