One of the early pioneers of e-sports, Major League Gaming, has been acquired by Activision Blizzard for $46 million. According to documents obtained by Esports Observer, the sale includes “substantially all of the Company’s liabilities”.
It is expected the money will pay off MLG’s debts, as they have filed for multiple debt financing rounds this past year alone, for a sum of over $6 million. This leaves a little money to go around for the stockholders of MLG as the buyout was done as a “corporate action taken without a stockholders’ meeting by less than unanimous written consent of our stockholders,” allowed under Section 228(e) of the Delaware General Corporation Law.
The Asset Purchase Agreement was also approved by the written consent of the holders of a majority of the outstanding shares of the Corporation’s Series A Preferred Stock, Series B Preferred Stock, Series B-1 Preferred Stock, Series B-2 Preferred Stock and the Series A Common Stock, voting together as a single class on an as-converted to Series A Common Stock basis.”
One of the original founders of MLG, and now the Senior Vice President of Activision Blizzard’s e-sports division, Mike Sepso told Wired, “We’re excited to be able to announce the deal. It gives us the capability in terms of people and technology to execute the vision that Steve [Bornstein, Chairman of Activision Blizzard Media Networks] and I started developing four months ago.”
Sepso did add that Activision does plan on keeping MLG going to maintain connections with developers and publishers in the gaming industry. “We’re making a very concerted effort to continue working with servicing the third-party relationships that MLG had,” Sepso said, citing as a specific example the working relationship between MLG and Valve, with MLG producing and broadcasting the first North American Majors tournament for Counter-Strike: Global Offensive later this month.
“Our mandate is as simple as, ‘go build the ESPN of e-sports,” Sepso said. “Which means we gotta work with everybody.”
This is the latest acquisition attempted by Activision as they purchased http://www.newgamernation.com/activision-set-to-buy-candy-crush-saga-developer/, notably known for making Candy Crush Saga, for $5.9 billion.
What do you think gamers? Do you think this will be a resurgence for Major League Gaming, or is this something else? Let us know in the comment section below and for all things gaming, stay right here to New Gamer Nation.