Activision Buys “Substantially All” Major League Gaming Assets for $46 million
Ashley Allen / 3 years ago
Major League Gaming – the once-premier eSports company in North America, which organised StarCraft 2 and Call of Duty tournaments – is all but dead, with Activision Blizzard buying up “substantially all” of its remaining assets for $46 million, according to eSports Observer. MLG’s board of directors agreed to the Asset Purchase Agreement following a special meeting held on 21st December.
The following letter was sent to shareholders shortly after the agreement was made:
While ordinarily, such a sale would require approval from shareholders, the board used Section 228(e) of Delware General Corporation Law to force “corporate action taken without a stockholders’ meeting by less than unanimous written consent of our stockholders”:
“The Asset Purchase Agreement was also approved by the written consent of the holders of a majority of the outstanding shares of the Corporation’s Series A Preferred Stock, Series B Preferred Stock, Series B-1 Preferred Stock, Series B-2 Preferred Stock and the Series A Common Stock, voting together as a single class on an as-converted to Series A Common Stock basis.”
Sundance DiGiovanni, the CEO of MLG and holder of one of the coolest names I’ve ever heard, has been removed from his role, replaced by former Chief Executive Greg Chisholm.
Many stockholders are furious at being bypassed, with one anonymous party lamenting, “I got f*****d on stock,” with money from the sale paying off MLG’s debts.
It is not yet known whether MLG’s planned Counter-Strike: Global Offensive Major Championship in Columbus, OH will still go ahead, but the company as we know it no longer exists.