The North American eSports league company called Major League Gaming (MLG) has been sold out to rival Activision Blizzard.
According to a report by eSports Observer, the sale happened just prior to New Year's Day and it was decided as a "corporate action without a stockholders meeting by less than unanimous written consent". Following the sale of MLG assets, the company's CEO Sundance DiGiovanni has been replaced by Gred Chisholm, former MLG CFO.
It was revealed in a letter dated December 22 sent to shareholders that Activision Blizzard paid $46 million in cash for MLG's assets and "assumed certain liabilities".
According to eSports Inquirer, both companies refused to comment on the buy-out as of press time, however some insider sources from MLG have declared that later this week they will release a full statement.
Several MLG shareholders expressed their disappointment on Twitter social media network. ESports personality and Series B shareholder Scott "SirScoots" Smith declared that he was only notified about the sale one day before the New Year.
The sale of MLG to Activision Blizzard potentially makes the end of an era. MLG grew the niche of eSports entertainment by leaps and bounds. At one time, the company has been the largest eSports player in all of North America, according to GameRant. However, the year 2015 has not been a smooth one for eSports company. They end up losing out to their rivals on the Call of Duty World League. After the first huge drug controversy in the eSports world, MLG had a tough ride.
After the complete change of ownership, since Activision Blizzard has reportedly purchased all MLG assets for 46 million dollars, the former eSports company has practically ceased to exist.
MLG was launched in the year 2002 by DiGiovanni and Mike Sepso. Since then, the company has became popular by hosting small Call of Duty, Hal, DOTA, StarCraft, and League of Legends tournaments.
