Gaming powerhouse Activision Blizzard, Inc. has acquired eSports network Major League Gaming, Inc. (MLG) for $46 million.

News of a possible acquisition first emerged January 1.

Founded in 2002, MLG runs a digital network that promotes eSports globally through premier competitions with an aim of delivering premium gaming content to viewers anytime, anywhere through its global streaming platform.

It primary operations include the online broadcast network MLG.tv, which offers a 24/7 stream of professional gaming via the web, mobile, connected television sets and gaming consoles; the MLG Pro Circuit, which as the name suggests is its own professional gaming league; and GameBattles, a cross platform online gaming tournament system that is claimed to have 9 million registered users.

MLG can boast of a number of leading positions in the competitive gaming arena, including having the longest-running professional gaming league in North America, as well as the leading players, teams and leagues in the market.

The company claims to have an audience over 100 million unique viewers a year.

“Our mission for over 12 years has been to promote and expand the growth of competitive gaming worldwide, and today the industry is at a key inflection point as its popularity soars and rivals that of many traditional professional sports,” MLG Chief Executive Officer and Cofounder Sundance DiGiovanni said in a statement. “This acquisition and Activision Blizzard’s commitment to competitive gaming will expand the opportunities for gamers to be recognized and celebrated for their competitive excellence.”

ESPN of eSports

Activision has big plans for MLG, with the acquisition being complementary to a push by the company to become a big player in the media business.

“Our acquisition of Major League Gaming’s business furthers our plans to create the ESPN of eSports,” Activision Blizzard Chief Executive Officer Bobby Kotick said. “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.”

eSports is a rapidly growing business with SuperData Research forecasting that the global eSports market will grow from $748.8 million today to over $1.9 billion by 2018, driven by the U.S. and Europe; by contrast, the largest eSports market today is Asia.

Activision has a good product and brand name with MLG, but with the likes of TBS and even ESPN already broadcasting eSports at times, it will be a difficult challenge for it to take what is essentially an online brand, be it popular, and turn it into a true ESPN competitor.

Prior to acquisition, MLG had raised $69 million over six rounds, meaning the company was sold at a loss. The only known investor we could find was Oak Investment Partners.

Image credit: MLG