Major League Gaming, the once mighty American e-sports organisation, has been bought by Activision Blizzard in a $46 million (£31 million) deal. MLG will be dissolved as part of the deal, with Activision Blizzard picking up most of its remaining assets.
MLG has struggled in recent years following its early success organising tournaments for the likes of StarCraft 2 and Call of Duty, and has had to seek debt financing to the tune of $6 million (£4 million) to meet its financial obligations. In October, MLG also lost the hosting rights to the Call of Duty World League's Pro Division to rival ESL (Electronic Sports League).
According to a report from eSports Observer, which claims to have obtained documents detailing the sale, the majority of the $46 million will go towards paying off MLG's debts, leaving little for stockholders. Unsurprisingly, many shareholders are disappointed with the deal, which went ahead without their consent thanks to a legal loophole in Delaware General Corporation Law.
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