Activision Blizzard Acquires Major League Gaming to Join the Live Streaming Industry
It looks like Activision Blizzard is strengthening its venture on the world of streaming as it recently acquired Major League Gaming (MLG), a company that creates online streaming for gaming events.
According to Business Wire, Activision Blizzard's acquisition of MLG will further strengthen their presence in the live streaming market.
Bobby Kotick, Chief Executive Officer of Activision Blizzard, said in a statement, "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."
Mike Sepso, Senior Vice-President of Activision Blizzard, said that the company and MLG share the same vision of empowering avid gamers through live streaming and being able to share their talents to other gamers and avid fans of the gaming industry.
Activision Blizzard's active indulgence on e-sports and interactive gaming fits perfectly with MLG's capabilities. Despite the company's acquisition of MLG, the latter will continue its operation on MLG.tv, GameBattles Platforms and MLG Pro Circuit. Currently, the e-sports business caters to over 100 million viewers, making this investment by Activision Blizzard viable.
According to analysts, the e-sports business will immensely gain an audience of up to 300 million by 2017. MLG has been a part of these numbers, and through that, they were able to deliver massive streaming on professional gaming competitions. MLG's broadcasts have been viewed by millions; hence, they will continue doing what they are good while strengthening their ties by merging with Activision Blizzard.
According to Variety, Activision Blizzard acquired MLG for $46 million, citing the investment as a big step towards mainstream broadcasting of e-sports.
Activision Blizzard said that the goal is "to bring e-sports into the mainstream by creating and broadcasting premium e-sports content, organizing global league play and expanding distribution with key gaming partners."
As per eSports Observer, Activision Blizzard got the majority of MLG shares and assets for the $46 million deal. In the Asset Purchase Agreement, the division of the $46 million deal was detailed, in which $31 million of the cash purchase went to the "discharge of certain liabilities of the corporation". The remaining $15 million, according to the agreement, is "being held in escrow and is subject to potential claims for indemnification."
Activision Blizzard is behind the successful games "Call of Duty," "World of Warcraft," "Skylanders" and "Guitar Hero."
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