Indebted MLG Might Have Been Bought Over by Activision for $46M!
This has not come out from the official sources, but apparently MLG (Major League Gaming) has been bought over by Activision! The organization once used to be the biggest eSports company but it looks like they ran into one too many financial crises.
According to word that is circulating the internet, an Asset Purchase Agreement has been signed on December 21 by the board of directors of MLG that transfers substantially all assets of the company to Activision for a sum of $46 million.
What’s more, a copy of a letter that was allegedly sent out to the shareholders about 10 days ago has been revealed which clearly states the amount that has been paid and the assets that have been transferred. Here’s an excerpt from the
Pursuant to the Asset Purchase Agreement, the Corporation sold certain of its assets to Activision, and Activision assumed certain limited liabilities of the corporation. the corporation retained its subsidiary, Agora Games LLC, as well as the Corporation’s cash, cash equivalents and bank accounts, certain other specified assets of nominal value and substantially all of the Company’s liabilities. In consideration for the assets, Activision paid the corporation $46,000,000 in cash and assumed certain specified liabilities.
That is not all, it is also being said that the company CEO, Sundance DiGiovanni, has been replaced by former CFO Greg Chisholm.
However, it would be of interest here that an unconfirmed news suggests that not all the shareholders were informed of the decision. Those who were informed, however, include Treehouse Capital LLC, Ritchie Opportunistic Trading Ltd., Oak Investment Partners, and Legion Capital Investments LLC.
For those who don’t know, Legion Capital Investments LLC is being run by the co-founder of MLG and current senior vice president of esports at Activision Blizzard, Mike Sepso.
This has come as a shock to many, but since no official word has come from MLG or Activision yet, it would be wise to wait a while before taking it for granted.