The Esports Advocate
Esports business news: deals, legal, and governance.
Documents
Federal Trade Commission Officially Opposes Microsoft’s Activision Blizzard Buyout
The Federal Trade Commission (FTC) formally initiated legal action in December 2022 to block Microsoft’s proposed $69 billion acquisition of Activision Blizzard.
- The U.S. Federal Trade Commission (FTC) officially filed a lawsuit on December 8, 2022, to block Microsoft’s proposed $69 billion acquisition of Activision Blizzard.
- The FTC alleges the merger would harm consumers and stifle competition by allowing Microsoft to leverage AAA titles like Call of Duty and World of Warcraft to force users toward its own console and cloud gaming platforms.
- The decision to file the lawsuit followed a 3-1 vote by FTC commissioners.
Samsung Named Official Smartphone Partner of Snapdragon Pro Series
Qualcomm Technologies has designated Samsung Electronics as the official smartphone partner for the Snapdragon Pro Series, a global mobile esports competition circuit managed by the ESL FACEIT Group.
- Samsung has been named the official smartphone partner for the ESL FACEIT Group’s Snapdragon Pro Series mobile esports circuit.
- Competitors in 'Mobile Challenge' and 'Mobile Masters' level tournaments will use Samsung Galaxy devices powered by Snapdragon mobile platforms.
- The partnership officially began with the Snapdragon Pro Series Mobile Challenge Finals held at DreamHack Valencia from December 9–11, 2022.
More Layoffs Hit HSEL Owner Generation Esports
Generation Esports, the parent company of the High School Esports League (HSEL), has undergone a second round of staff reductions as of December 2022.
- Generation Esports, owner of the High School Esports League (HSEL), has initiated a new round of staff layoffs as of early December 2022.
- Co-founder and long-time executive Charles Reilly has ceased operational involvement with the company as of late July 2022, though he remains on the payroll.
- This reduction follows a previous round of layoffs in September 2022, which affected an estimated 15–20 employees.
Rift at FTC Over Microsoft’s Activision Blizzard Buyout
Internal deliberations within the Federal Trade Commission (FTC) regarding Microsoft’s proposed $69 billion acquisition of Activision Blizzard have revealed a significant policy divide among the agency's commissioners.
- Internal disagreement exists within the four-member FTC panel regarding Microsoft’s proposed $69 billion acquisition of Activision Blizzard.
- At least one of the two Democratic commissioners, aside from Chair Lina Khan, is reportedly leaning toward supporting the merger, potentially creating a tie vote that could lead to the deal's approval by default.
- Republican commissioner Christine Wilson has already indicated her support for the acquisition.
Dr. Alan Bunney Resigns from Panda Global
Dr. Alan Bunney, founder and long-time CEO of the esports organization Panda Global, resigned from his position in December 2022.
- Dr. Alan Bunney has resigned as CEO of Panda Global following controversy surrounding the cancellation of the Smash World Tour (SWT) 2022 and 2023 events.
- The canceled Smash World Tour event was set to feature a $500,000 prize pool, which would have been the largest in the history of competitive Super Smash Bros.
- Panda Global is now operating under an interim management committee, and the company has postponed its own Panda Cup Finale citing safety concerns.
QA Workers at Activision Blizzard Albany Officially Unionize
Quality assurance workers at the Activision Blizzard studio in Albany, New York, have officially unionized, forming the Game Workers Alliance Albany.
- Quality assurance workers at Activision Blizzard Albany have officially unionized as the Game Workers Alliance Albany following a 14-0 vote.
- The U.S. National Labor Relations Board (NLRB) rejected an appeal from Activision Blizzard management, which had argued that the bargaining unit should be studio-wide rather than limited to QA staff.
- Management challenged four additional votes on the grounds that they were not submitted in time, despite organizers attributing the delays to issues such as mail delivery problems.
Call of Duty League Enters 2023 Season Without a Media Rights Partner
The Call of Duty League (CDL) commenced its 2023 season without a dedicated media rights partner following the expiration of a three-year agreement with YouTube.
- The Call of Duty League (CDL) began its 2023 season without a media rights partner following the expiration of a three-year, $160 million deal with YouTube that previously covered the CDL, Overwatch League, and Hearthstone.
- Activision Blizzard has moved to broadcasting CDL competitions on Twitch and its official website, though Twitch is not currently designated as an official broadcast partner.
- League franchisees and stakeholders have expressed significant concern regarding the loss of revenue sharing resulting from the absence of a new media rights deal.
Microsoft Prepared to Fight FTC in Court Over Activision Blizzard Merger
Microsoft is prepared to challenge the Federal Trade Commission (FTC) in court to secure its proposed $69 billion acquisition of Activision Blizzard.
- Microsoft is prepared to challenge the Federal Trade Commission (FTC) in court to defend its proposed $69 billion acquisition of Activision Blizzard.
- The company is reportedly negotiating a 10-year agreement with Sony to keep the Call of Duty franchise available on PlayStation platforms to address antitrust concerns.
- Regulatory opposition to the merger has been driven by concerns regarding market competition in jurisdictions including the UK and the European Union.
Smash World Tour Events Canceled, Panda Global Blamed
The cancellation of the Smash World Tour (SWT) in late 2022 serves as a focal point for tensions within the Super Smash Bros. competitive community regarding corporate oversight and industry consolidation.
- The Smash World Tour (SWT) canceled its 2022 Championships and all 2023 events after receiving notice from Nintendo that it would not be granted a license to operate.
- Nintendo stated that it denied the license because the Smash World Tour failed to meet internal partner guidelines and health and safety standards.
- SWT organizers claim the cancellation will result in hundreds of thousands of dollars in losses due to refunds, sponsor obligations, and logistical costs.
Wemade Makes Strategic Investment in DRX
South Korean game developer Wemade Co., Ltd. has finalized a strategic investment in the professional esports organization DRX.
- South Korean game developer Wemade has made a strategic investment in the esports organization DRX, though the specific financial terms of the deal were not disclosed.
- Wemade intends to leverage this partnership to onboard DRX’s intellectual property and gain access to the organization’s 3.7 million-strong fanbase.
- The investment aligns with Wemade’s ongoing push to promote its blockchain-based NFT platform, WEMIX.
Fnatic Secures Hivemind Capital Investment and Partnership
London-based esports organization Fnatic has entered into a strategic partnership and investment agreement with Hivemind Capital, a crypto asset management firm founded by former Citibank executive Matt Zhang.
- London-based esports organization Fnatic has entered into a strategic partnership and investment deal with crypto asset management firm Hivemind Capital.
- The investment is intended to accelerate Fnatic’s ability to develop and scale Web3 and blockchain-based applications.
- The financial terms and the specific duration of the investment and partnership agreement were not disclosed.
Serbia Approves Microsoft’s Activision Blizzard Acquisition as FTC Mulls Opposition
The Serbian government has granted unconditional approval for Microsoft’s proposed $69 billion acquisition of Activision Blizzard, marking a notable regulatory milestone for the tech giant.
- The U.S. Federal Trade Commission (FTC) is reportedly preparing an antitrust lawsuit to block Microsoft’s $69 billion acquisition of Activision Blizzard.
- The Serbian government has granted unconditional approval for the acquisition, joining Brazil and Saudi Arabia as jurisdictions that have cleared the deal.
- Microsoft is preparing to offer remedies to European Union regulators, including a proposed 10-year licensing deal for Call of Duty, to address concerns regarding platform exclusivity.