It’s been reported that Activision Blizzard has purchased premier eSports league Major League Gaming. However, this has yet to be verified by either company and should be considered a rumor for now.
The primary source of the rumor claims that MLG was already going out of business, and the board of directors rushed this sale to Activision Blizzard. Stockholders were given a letter a day later. An excerpt from the letter states the purchase was made at $ 46 million.
It’s also been rumored that CEO Sundance DiGiovanni has been removed from his role and replaced by Greg Chisholm, MLG’s former CFO. Activision and MLG also allegedly have an existing connection via Mike Sepso, another MLG cofounder, SVP of eSports at Activision Blizzard, and manager at Legion Capital Investments LLC, one of MLG’s major stockholders.
Lastly, the source indicates that stockholders reacted with disbelief at the news. Most of the money will be used to pay off MLG’s debts. MLG has gone through several debt financing rounds, and may have simply run out of interested angel investors.
Again, none of the parties involved have confirmed this rumor. If it is true, it will certainly shake up the eSports community. Although seen to be in decline, MLG remains one of the top eSports organizations in the world. Activision Blizzard stands to benefit most, with multiple games already enjoying MLG representation, and some newer games, such as the upcoming Overwatch, prime for new tournaments and eSports communities.
