Video game publisher Activision Blizzard is set to acquire eSports company Major League Gaming (MLG) and will use the deal as the starting point in developing a broadcasting empire rooted in eSports, with a similar status goal as that of ESPN to contact sports.
MLG is an established eSports company in North America that runs tournaments for different eSports games, including some published by Activision like "Call of Duty," "CS: Go" and "StarCraft II." However, it has been financially struggling in the past year just to keep up with its obligations. In fact, it was not able to run the Call of Duty World League last year, which gave ESL Gaming, MLG's rival company, the chance to host it instead, according to International Business Times.
Activision's goal of using MLG to boost its eSports Media Networks division was conceptualized by former ESPN CEO Steve Bornstein and MLG's co-founder Mike Sepso, the latter of which is known to have parted ways with MLG in October 2015 and joined Activision's new eSports venture.
"Our acquisition of Major League Gaming's business furthers our plans to create the ESPN of eSports. MLG's ability to create premium content and its proven broadcast technology platform - including its live streaming capabilities - strengthens our strategic position in competitive gaming," Activision Blizzard CEO Bobby Kotick said, according to Digital Trends. "MLG has an incredibly strong and seasoned team and a thriving community. Together, we will create new ways to celebrate players and their unique skills, dedication and commitment to gaming," he added.
There is no official statement on how much the deal costs, but leaked legal documents allegedly received by trade publication ESports Observer said that the price was at $46 million, The Los Angeles Times reported.
While MLG would find it uneasy to be working under Activision Blizzard and its former co-founder, Sepso, the acquisition undeniably gives MLG a better chance at keeping its business alive.
