Activision Blizzard has announced the purchase of Major League Gaming, and the reason is pretty surprising.
In late 2015, Activision Blizzard made a subtle announcement that, of all things, the company wanted to make a major dent in the eSports market. Activision wasn’t all talk and later hired former ESPN President Steve Bornstein and Mike Sepso, co-founder and President of Major League Gaming.
Activision Blizzard stepped up to the plate and essentially became the Jon Bon Jovi of eSports by purchasing Major League Gaming for $46 million, based off a early reporting from the eSports community.
Just to make everyone feel better about the purchase, Activision Blizzard CEO Bobby Kotick had this to say in a press release made public yesterday:
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. 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.
But…is this actually a good decision?
Maybe a look into how the shareholders of Activision Blizzard voted on the issue will give us an insight on the corporate feeling behind the purchase.
That might actually be a bad idea.
The shareholders’ response to this purchase, as reported by the eSports Observer, wasn’t exactly peachy. The purchase was “corporate action taken without a stockholders’ meeting by less than unanimous written consent of our stockholders.” Uh oh.
A questionable move, shady business dealings, and Activision doesn’t even have broadcast deals in place with major networks to actually show any competitions.
So what do you think? Is this a good move for Activision, or the beginning of the end? Let us know in the comments below!
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