Activision Blizzard takes over large parts of e-sports association Major League Gaming

Activision Blizzard appears to have taken over almost all parts of the esports organization Major League Gaming. It is not known exactly what the gaming studio wants to achieve with the acquisition. Major League Gaming probably wants to use the money to pay off debt.

The acquisition was not widely announced, but a letter sent to shareholders shows that Activision has paid Blizzard an amount of 46 million dollars, converted approximately 42 million euros. The letter came into the hands of Esports Observer. In exchange for the cash, Activision Blizzard appears to have acquired nearly all of Major League Gaming’s business, with the exception of its subsidiary Agora Games and some leftovers necessary for the company’s survival, such as bank accounts.

The letter shows that Major League Gaming wants to use most of the money to pay off debts. Due to the takeover, it is likely that Major League Gaming will cease the vast majority of its activities. The company will therefore continue to exist for the time being, although the name will be changed to MLG Legacy Holdings, probably to serve as a holding company for claims from shareholders. As part of the deal, Sundance CEO DiGiovanni has left and will be replaced by Greg Chisholm.

The organization is struggling with financial difficulties and has seen its influence in the online gaming tournament market diminish in recent times. Initially, Major League Gaming hosted tournaments such as the Call of Duty Championship, but it lost those rights to another party last year. The company did have plans to open a gaming arena in China next year, but it is likely that this will not take place.