One of the giants in eSports companies, Major League Gaming, has sold the majority of their assets to Activision Blizzard for $46 million, eSports Observer reports. They report that the sale was done as a corporate action without meeting with many of the stockholders, but was instead authorized by MLG’s board of directors and some of the stockholders.
eSports Observer reports that a letter went out to the stockholders after the sale, which detailed where the purchase money is going. $31 million of the cash purchase price will be used to ‘discharge certain liabilities of of the Corporation,’ which will probably go toward paying MLG’s debts. The other $15 million is being held in escrow pending any claims of indemnification.
Many stockholders are angry or unhappy at the sale, because most of the money will go to pay off debts, leaving little to go around for the stockholders. The letter sent to stockholders states that only certain tiers of stockholders will benefit from the purchase.
It’s also being reported that CEO Sundance DiGiovanni has been replaced by Greg Chisholm, who was MLG’s former CFO.
No word yet on how the sale could affect any upcoming events.