Activision Blizzard purchased a rather hefty Christmas present for themselves on December 21st, 2015, dropping $46 million and obtaining nearly every asset from one of North America’s largest major esports companies, Major League Gaming (MLG), according to eSports Observer.
A copy of the Asset Purchase Agreement was provided to MLG’s stockholders the following day, December 22nd, explaining the sales transaction with Activision:
“…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…the remaining $15,000,000 is being held in escrow and is subject to potential claims for indemnification. As required by the Asset Purchase Agreement, the Corporation intends to change its corporate name to MLG Legacy Holdings, Inc.”
Along with Activision’s purchase of “substantially all of the Company’s liabilities”, Sundance DiGiovanni, CEO of MLG, was also removed from his position, with Greg Chisholm, the company’s previous CFO, taking his place.
Activision’s purchase in an effort to alleviate MLG’s financial struggles comes as no surprise. Throughout the year of 2015, MLG filed for a total of over $6 million in debt, and was shafted as tournament runner for the Call of Duty World League by their esports rival, ESL. Unfortunately, because most of the money is geared towards debt relief, it is believed that most stockholders will have very little gain from the $46 million transaction.
The Asset Purchase Agreement also states that the “definitive terms of this [carve-out] plan have not yet been finalized”, meaning that the future of MLG, or what Activision plans to do with their newly acquired assets, is still unclear at this point in time. Be sure to stay tuned to GameSinners for any updates with this story.
RSS