The Esports Advocate
Esports business news: deals, legal, and governance.
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Gen.G Partners With Idahoan Foods to Promote Idahoan Potato Shreds Brand
The international esports organization Gen.G has entered into a partnership with Idahoan Foods to promote the company’s new snack product, Idahoan Potato Shreds.
- Esports organization Gen.G has partnered with Idahoan Foods to promote the company's new snack product, Idahoan Potato Shreds.
- The partnership features a 'gamified' brand activation at four major events: PAX West (Sept 1-4, 2023), DreamHack Atlanta (Dec 15-17, 2023), PAX East (March 21-24, 2024), and C2E2 (April 26-28, 2024).
- Gen.G gaming creators Stanz and Raynday will headline the activations, which include meet-and-greets, product sampling, and Nintendo Switch gameplay sessions of Overcooked.
Guild Esports Launches Street Fighter 6 Team
London-based, publicly traded esports organization Guild Esports has officially entered the fighting game community by launching a professional Street Fighter 6 team.
- London-based Guild Esports has entered the fighting game community (FGC) by launching its first professional Street Fighter 6 team.
- The new roster features professional players Reneil ‘JoKeR JoKeZ’ Landell, Rabiae ‘Takamura’ Houmaid, and Alfonso ‘VegaPatch’ Martínez Pozo.
- Guild Esports is partnering with Sky Broadband to host a live-streamed tournament called the 'sweat room,' where participants compete in high-temperature conditions.
Astralis Partners With Nordic Retailer Elgiganten
The Danish esports organization Astralis has entered into a strategic partnership with the Nordic retail giant Elgiganten.
- Danish esports organization Astralis has entered into a partnership with Nordic retail giant Elgiganten.
- The collaboration includes joint activations, events, and meet-and-greets featuring Astralis' three Counter-Strike: Global Offensive (CS:GO) teams.
- Elgiganten branding is now prominently displayed on the jerseys of Astralis' Counter-Strike players.
Inside Tencent’s Peace Elite League Summer Split Final: Shanghai
The Peace Elite League (PEL) Summer Split Final, held in August 2023 at the Shanghai Oriental Sports Center, serves as a case study for the commercial viability and brand integration strategies within Tencent’s mobile esports ecosystem.
- The Peace Elite League (PEL) Summer Split Final, held at the Shanghai Oriental Sports Center, awarded a total prize pool of ￥11.24M ($1.54M USD), with the winning team, TEC, receiving ￥5M ($687K USD).
- Tencent is aggressively pursuing non-endemic brand partnerships for Peacekeeper Elite, leveraging the game's realistic aesthetic to integrate brands like McDonald's, Tesla, Lotus, and Maserati directly into the in-game environment.
- The PEL ecosystem has secured over 30 brand partners to date, with 5–6 companies, including e-commerce platform Jing Dong, maintaining long-term sponsorship agreements.
Valorant Champions Skin Bundle Generates $40M
The 2023 Valorant Champions in-game skin bundle generated $40 million in revenue during its limited availability window, which began on August 4, 2023.
- The 2023 Valorant Champions skin bundle generated $40 million in revenue between its August 4 launch and August 24, 2023.
- Approximately 50% of the total revenue, amounting to $20 million, is being distributed evenly among the 16 partnered organizations in the Valorant Champions Tour (VCT).
- Each of the 16 VCT partner teams receives roughly $1.25 million from the bundle sales, independent of any additional prize money earned during the tournament.
Carry1st Partners With Riot to Bring Valorant Servers to South Africa
The partnership between South African publisher Carry1st and Riot Games marks a strategic expansion of infrastructure for the tactical shooter Valorant within the African continent.
- Riot Games and South African publisher Carry1st have partnered to launch local Valorant servers in South Africa, effective August 31, 2023.
- As part of the agreement, Carry1st will lead regional promotional campaigns to drive engagement and awareness for the game.
- Carry1st will host an interactive promotional activation at Comic Con Africa in Johannesburg, scheduled for September 22–25, 2023.
CMA Considers New Proposal From Microsoft to Finalize Activision Blizzard Acquisition
The United Kingdom’s Competition and Markets Authority (CMA) initiated a phase one investigation into a revised proposal from Microsoft regarding its $69 billion acquisition of Activision Blizzard.
- The UK's Competition and Markets Authority (CMA) has set an October 18, 2023, deadline to rule on a new proposal from Microsoft regarding its $69 billion acquisition of Activision Blizzard.
- To address previous regulatory concerns regarding cloud gaming, Microsoft has proposed divesting the cloud streaming rights for all current and future Activision Blizzard titles to Ubisoft for a 15-year period.
- Activision Blizzard CEO Bobby Kotick stated that the divestiture proposal does not alter the core merger agreement, closing deadline, or the cash consideration to be paid per share.
Riot Games Appoints Carlos Antunes to Head of League of Legends Esports for the Americas
Riot Games has appointed Carlos Antunes as the new Head of League of Legends Esports for the Americas.
- Riot Games has appointed Carlos Antunes as the new Head of League of Legends Esports for the Americas, overseeing operations in North America, Latin America, and Brazil.
- Antunes will manage the League of Legends Championship Series (LCS), the Latin America Liga Latinoamérica (LLA), and the Campeonato Brasileiro de League of Legends (CBLOL).
- A primary objective for Antunes in his new role is to identify and secure a new Commissioner to lead the LCS.
OverActive Media Q2 2023 Financial Results
OverActive Media’s financial results for the second quarter of 2023 reflect a period of significant revenue growth coupled with increased net losses.
- OverActive Media reported Q2 2023 total revenues of $3.9M CAD ($2.94M USD), representing a 65% year-over-year increase driven by team operations and league share payments.
- The company recorded a net loss of $3.4M CAD ($2.6M USD) for the quarter, an increase of $1.1M CAD compared to Q2 2022 due to the absence of deferred franchise payments.
- Adjusted EBITDA loss for Q2 2023 was $2.5M CAD ($1.89M USD), marking a $1.3M CAD improvement over the same period in the previous year.
Huya Q2 2023 Financial Results
Huya, a China-based live streaming platform, released its financial results for the second quarter of 2023, highlighting a significant shift in profitability despite a contraction in total revenue.
- Huya reported a net profit of $15.9 million (¥115M) for Q2 2023, representing an 1,850% year-over-year increase from the $818,000 (¥5.9M) reported in Q2 2022.
- Total revenue for Q2 2023 reached $252.5 million (¥1.82B), a 20% decline compared to the $315 million (¥2.27B) generated in the same period of 2022.
- Longtime CEO Rongjie Dong stepped down from his position on August 7, 2023, after 17 years with the company, citing personal reasons.
America First Legal Files Complaint Against Activision Blizzard With EEOC
The conservative watchdog group America First Legal (AFL) has filed a formal civil rights complaint with the Equal Employment Opportunity Commission (EEOC) against Activision Blizzard.
- The conservative watchdog group America First Legal (AFL) has filed a formal civil rights complaint with the Equal Employment Opportunity Commission (EEOC) against Activision Blizzard.
- AFL issued a cease-and-desist letter demanding that Activision Blizzard discontinue the use of gender and racial preferences in its hiring and internship programs.
- The complaint alleges that Activision Blizzard’s diversity, equity, and inclusion (DEI) policies discriminate against white, Asian, and Jewish male applicants by utilizing 'diverse slates' in recruitment.
GameSquare Q2 2023 Financial Results
GameSquare’s financial results for the second quarter of 2023 reflect a period of significant transition following the company’s April merger with Engine Gaming.
- GameSquare reported Q2 2023 revenue of $14.23 million, a significant increase from $6.65 million in the same period of 2022.
- The company narrowed its net loss to $4.09 million in Q2 2023, down from a $12.25 million net loss in Q1 2023.
- Management has removed $5 million in annualized operating costs during the quarter and expects to reach a total of $8 million in annualized cost savings by the end of 2023.