Just like clockwork after announcing an eSports division, Activision Blizzard has bought out Major League Gaming at the price of $46 million and is effectively closing down the company. Activision Blizzard had already brought over MLG co-founder Mike Sepso to be the VP for publisher's eSports division.
According to esportsobserver.com last Friday, MLG's board of directors called a special meeting on December 21 authorizing the deal, with CEO Sundance DiGiovanni stepping down and CFO Greg Chisholm taking over the position. Unfortunately, some majority stock owners had no knowledge of the deal and are disappointed that a considerable portion of the $46 million will be used to pay MLG's debts. Activision Blizzard has confirmed the acquisition of MLG today.
Bobby Kotick believes that this acquisition will further Activision Blizzard's plans to "create the ESPN of eSports":
MLG's ability to create premium content and its proven broadcast technology platform – including its livestreaming capabilities – strengthens our strategic position in competitive gaming.
It certainly would for the multiplayer-centric titles in Activision Blizzard catalogue including Destiny, Call of Duty, Hearthstone, Heroes of the Storm, Starcraft, and Overwatch. Beyond that, Activision Blizzard is investing in the eSports industry which can only grow in North America from here, with a report from Newzoo estimating that it will reach almost half a billion dollars with an audience of 300 million viewers.
