NEWS
NEWS
NEWS
Esports organization MLG reportedly sold all of its assets to Activision Blizzard
Major League Gaming (MLG) has been one of the biggest names in organized esports for almost the entire history of the professional gaming industry, but now it looks like the tournament organizer may be selling off its brand to Activision Blizzard Inc for the sum of $46 million.
According to a report by Eports Observer, MLG has supposedly sold off all of its assets to Activision Blizzard. In the report, Esports Observer points to a letter sent out to stockholders informing them of the purchase.
Pursuant to the Asset Purchase Agreement, the Corporation sold certain of its assets (the “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. $31,000,000 of the cash purchase price was paid to or on behalf of the Corporation, or used to discharge certain liabilities of the Corporation, on December, 22, 2015; the remaining $15,000,000 is being held in escrow and is subject to potential claims of indemnification. As required by the Asset Purchase Agreement, the Corporation intends to change its corporate name to MLG Legacy Holdings, Inc.
If the report is accurate, then MLG co-founder and CEO Sundance DiGiovanni will also be stepping down from his role and will be replaced by current MLG CFO Greg Chisholm.
Activision Blizzard has yet to confirm or deny whether or not the purchase has actually taken place, but with the publisher already directly involving itself in a number of professional tournaments, such as the recent Hearthstone World Championships, it would not be especially surprising if Activision Blizzard did indeed buy MLG.
It is unclear how the purchase would affect future MLG game tournaments, especially for games that are not owned by Activision Blizzard.
photo credit: IMG_0331 via photopin (license)
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