In a meeting of the MLG’s Board of Directors on Dec. 21, an Asset Purchase Agreement was approved which has given Activision Blizzard “substantially all” of the companies liabilities. After the Board of Directors meeting, a letter was sent out to stockholders letting them know about the sale.
CEO Sundance DiGiovanni has also been replaced by Greg Chisholm, former CFO of MLG. Esports Observer reports the sale was done without a stockholders meeting, and with less than unanimous written consent of the stockholders, which is allowed under Section 228(e) of the Delaware General Corporation Law. The stockholders who were involved in the vote were “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” which in this case includes Treehouse Captial LLC, Oak Investment Partners, Legion Capital Investments LLC, and Ritchie Opportunistic Trading Ltd. Legion is actually managed by MLG co-founder Mike Sepso who is now the current Senior Vice President of Esports at Activision Blizzard.
Esports Observer reports that stockholders outside of these categories are in disbelief over the decision, one anonymous stockholder saying “I got fucked on stock”. Some people might not be very surprised by this decision given the fact that MLG filed for multiple debt financing rounds for around $6 million this year.
The MLG has seen a definite rise in competition for their spot as the premiere eSports leader. ESL was recently chosen as the tournament runner for the Call of Duty World League instead of MLG, although MLG is still running the Halo North America Regional Finals. Neither MLG nor Activision Blizzard have made a public comment on how this deal will affect operations, but with any luck this move won’t negatively affect the upcoming events MLG has had planned – including the Counter Strike: Global Offensive Major Championship in Columbus, Ohio in March.