In a $46 million deal, Activision Blizzard has acquired a majority of Major League Gaming's assets that essentially dissolves the professional gaming organization. Though, it is completely unclear that if Major League Gaming will be completely dissolved and absorbed into the massive company named Activision Blizzard or if it will remain more or less the same, the only fact is that MLG will be backed by funds from Activision. From past couple of months, MLG was under the heavy debt which must have forced the company sign deal with Activision Blizzard.
The deal between MLG and Activision resulted in lot of criticism from other stakeholders because most of the sum gained through the agreement will be used to pay off debts and loans. Another statement by investors state that MLG has signed deal without consulting stockholders. Delaware law states that stockholders are not required to be informed by the purchase of a company if the majority of large shareowners agree. With the purchase of the MLG, Activision Blizzard becomes even more gigantic than before. This purchase may hint at a bigger investment in e-sport scenes for games like Starcraft, being thoroughly replaced by MOBA’s like League of Legends and DOTA 2. In October, MLG lost the hosting rights to the Call of Duty World League's Pro Division to the ESL.
In 2002, DiGiovanni and Mike Sepso founded MLG and throughout the years it's regularly hosted professional gaming tournaments, broken into the streaming business, and helped bring eSports to television and the mainstream. In 2014, MLG opened the United States' first professional gaming arena in Ohio. It planned to open another eSports arena in China by 2017. According to sources, Sundance DiGiovanni, Co-Founder and CEO of MLG, left his role and is replaced by former CFO Greg Chisholm. Though, the company has not yet publically confirmed the report, it is expected to hear confirmation very soon.
DiGiovanni and Mike Sepso founded MLG in 2002, and throughout the years it's regularly hosted professional gaming tournaments, broken into the streaming business, and helped bring eSports to television and the mainstream. In 2014, MLG opened the United States' first professional gaming arena in Ohio. It planned to open another eSports arena in China by 2017.
MLG's relevance has waned in recent years and in October, it lost the hosting rights to the Call of Duty World League's Pro Division to the ESL. Sepso himself joined Activision that same month as Senior Vice President of its new eSports division, overseeing pro franchises including StarCraft, World of Warcraft, Call of Duty, Heroes of the Storm and Hearthstone, according to a report from the Engadget.
As report by RegalTribune, Even though MLG is viewed by the general public as more of a meme instead of anything else, Major League Gaming is a rather important part of the e-sports scene. The news that Activision Blizzard has purchased MLG for $46 million will basically mean that currently, ESL has remained the main independent e-sports organization in NA.
Esportsobserver report said, In addition to these changes, CEO Sundance DiGiovanni has been removed from his role and replaced by Greg Chisholm, MLG’s former CFO.
The move 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.”