The famous and once powerful e-sport organization, Major League Gaming has been purchased by Activision Blizzard for $46 million. Activision Blizzard will use most of its assets, excepting only MLG.
Activision Blizzard was named in 2014 the fifth largest gaming company, based on its selling. The famous video games Call of Duty, Warcraft and Star Craft were in fact released by Activision Blizzard.
The decision to dissolve MLG came as no surprise, since MLG has been struggling a lot in the last years. MLG was founded in 2002 in New York. MLG organized a lot of tournaments for video games in Canada and in the United States. Competitions held by MLG have been broadcasted on ESPN.com as well as other websites and on television. MLG was also involved in developing games and was really successful in its first years.
In the recent years, MLG needed financing from the outside in order to make sure their financial obligations were paid. MLG actually borrowed $6 million. In October, the company faced other problems that involved the hosting rights to one of the Call of Duty’s games to its rival, Electronic Sports League (ESL).
Companies like MLG will soon become unnecessary since most of the games will be organizing their own tournaments. So even though Activision Blizzard will probably carry on with the game tournaments, it won’t be for much longer.
eSports Observer has claimed to know details of the deal and revealed that most of the money will be needed to pay debt and accordingly, the stockholders will have little left. Because the deal doesn’t guarantee much money to them, most of the stockholders didn’t like the deal and even opposed it. Unfortunately for them, a loophole in the Delaware General Corporation Law policy allowed the deal to go ahead, with or without their consent.
The deal also includes the replacement of MLG’s CEO, Sundance DiGiovanni, with the former MLG CFO, Greg Chisholm. In 2015, Activision Blizzard has recruited the former co-founder of MLG, Mike Sepso, to be in charge of their new division regarding e-sports. That division was also joined by Steve Bornstein, the former CEO of NFL and ESPN Network. The two new additions to the e-sports department make it sound really promising. The before mentioned division was actually built on the former IGN Pro League company, which was purchased in 2013.
As the news that Major League Gaming has been purchased by Activision Blizzard, we expect only great things in the future from the merging of these two.
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