Activision Purchases Major League Gaming

Reports say that gaming giant Activision Blizzard purchased most of Major League Gaming’s assets in a deal valued at $46 million, effectively dissolving the eSports leader and forcing some organizational changes in MLG. A letter supposedly distributed to stockholders has been obtained by eSports Observer, which confirms that the MLG’s Board of Directors agreed to offload company assets to Activision for $46 million. What many did not know and are in a bit of shock from, is this sudden transition and also the firing of former CEO Sundance DiGiovanni, while a former CEO has been brought in to replace DiGiovanni. It was 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.

This means that MLG now has several debts to pay off which was why this transition occurred in the first place. As MLG’s debt continued to pile on, the company began looking for a way out. With the purchase of the MLG, Activision Blizzard becomes even more very big than before.

Whether Activision Blizzard absorbs MLG into their own eSports division remains to be seen, but this move leaves ESL as the main independent eSports organization in North America.

MLG has hosted major tournaments such as Super Smash Bros Melee, Halo, Tekken, Call Of Duty. In October, MLG lost the hosting rights to the Call of Duty World League’s Pro Division to the ESL. Back in 2014, the company opened up an eSports arena in OH and planned to open another arena in China by 2017, though that plan may now be up in the air.

The acquisition solidifies Activision Blizzard’s market position. The list of companies it recently acquired includes King, creator of the popular Candy Crush Saga for $5.9 billion.