MLG bought out by Activision
Major League Gaming (MLG), once known as the largest esports company in North America, going out of business, having sold a large majority of assets to the growing media conglomerate Activision Blizzard.
Esports Observer have released documents related to the deal, which took place on 21 December, stating that MLG’s assets have sold in the $46 million deal. During which, CEO and co-founder Sundance DiGiovanni has been replaced by Greg Chisholm, MLG’s former chief financial adviser.
Despite their leading presence in esports, MLG were known to be in debt and struggling to meet financial obligations. Problems for the organisation last year when MLG lost hosting rights for Call of Duty World League Pro Division to competitors ESL Gaming.
In the excerpt from the letter sent out to stockholders, informing them of the sale, it states that the purchase was approved by written consent by majority stockholders. Among others, this includes Legion Capital Investments LLC, managed by Mike Sepso, the other co-founder of MLG, who is also the current senior vice president of esports at Activision Blizzard.
MLG was founded in 2002 by Sundance DiGiovanni and Mike Sepso, and has led the esports scene in North America for quite some time, running many successful tournaments for Call of Duty, StarCraft and Counter-Strike: Global Offensive, as well as other titles.
For the most part the sale should not affect any upcoming tournaments under MLG, although the current carnation of MLG is no more and we can only wait to see how this affects the world of esports.