Major League Gaming, the e-sports company, has sold "substantially all" its assets to Activision Blizzard for $46m (£31m, €42.36m). MLG's board of directors is reported to have agreed for the sale at a special meeting held on 21 December.
An excerpt of the letter which was sent to all stockholders regarding the purchase agreement, has been obtained by e-sports Observers. It states: "In consideration for the Assets, Activision paid the Corporation $46,000,000 in cash and assumed certain specified liabilities. $31,000,000 of the cash purchase price was paid to or on behalf of the Corporation, or used to discharge certain liabilities of the corporation, on December 22, 2015; the remaining $15,000,000 is being held in escrow and is subjected to potential claims for indemnification. As required by the Asset Purchase Agreement, the Corporation intends to change its corporation name to MLG Legacy Holdings, Inc."
Additionally, as a part of acquisition MLG's new chief executive officer would be Greg Chisholm, who would replace the post of Sundance DiGiovanni. Greg Chisholm was the former chief financial officer of MLG. The sale was reportedly done with the consent of MLG's stockholders in accordance with certain law.
The stockholders are Treehouse Capital LLC, Ritchie Opportunistic Trading Ltd, Oak Investment Partners, and Legion Capital Investment LLC, which are managed by Mike Sepso, the co-founder of MLG and the current senior vice president of e-sports at Activision Blizzard. Speculation further indicates that majority of the sales amount would be used for paying off company's debt.
Prior to this purchase agreement, there have been reports suggesting the internet giant, Yahoo is in advanced talks to buy MLG, with the deal was expected to complete before 2016. But later on, a source familiar with the matter told GameSpot that these reports are not true, although both the companies held some discussions but the talks are no longer in progress.