MLG assets acquired by Activision Blizzard comes as a shock for many, especially since the news broke just on New Year’s Eve. Now confirmed, the news that Activision Blizzard purchased the majority of Major League Gaming (MLG) assets for 46 million dollars still maintains some mystery spots.
Many of those who stumbled across the news since New Year’s Eve are wondering what’s in store for MLG and its household games. The report firstly published by eSportsObserver stated that Activision Blizzard purchased ‘substantially all’ of MLG’s assets. With a price tag of just 46 million dollars, the question many are asking is legitimate.
It seems that with the purchase of MLG assets by Activision Blizzard, Sundance DiGiovanni (MLG CEO) is also saying goodbye to his position. He will be replaced by MLG ex-CFO Greg Chisholm. According to the eSportsObserver, the Major League Gaming – Activision Blizzard deal was already signed, packed and shipped out to investors on December 21st. It’s thus understandable why MLJ assets acquired by Activision Blizzard comes as a shock for many.
Neither MLG, nor Activision Blizzard have commented on the deal so far. Perhaps with the holiday break, the waters are more silent. Except more information on the matter from Monday onwards. It’s fairly odd that the deal was already signed on December 21st, while the news only surfaced on New Year’s eve.
In addition, the purchase price of 46 million dollars is pocket change if we think back on the 5.9 billion dollars Activision paid to acquire King. Moreover, why would Activision bother to purchase MLG when eSports can be developed internally anyhow. With Activision’s market position, pocketing 46 million dollars would have been a small expenditure saved. However, until comment from the two players in the deal is received, everything remains just speculation.
MLG has built its way up as an important player in the eSports arena over the past ten years. As other companies joined the scene, control was slowly lost. Activision Blizzard, Riot and Valve are just a few of the examples. With the latest purchase, it might become clear that publishers are looking to gain full control over the eSports operations relating to their games.
Bound by Call of Duty or Starcraft 2 (Activision Blizzard titles developed by MLG), it might be a good idea for Activision to purchase MLG just to boost the eSports division and bring it in-house. Under these circumstances, what happens do games which do not belong to Activision? More details should be available soon.
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