The Esports Advocate
Esports business news: deals, legal, and governance.
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SQID Technologies to Divest ICON Esports to BLSS
SQID Technologies Limited, an Australian payment processing and investment firm, has announced the divestment of its esports subsidiary, ICON Esports Pty Ltd, to the Queensland-based organization BLSS Holdings Pty Ltd.
- SQID Technologies has entered into an agreement to divest 100% of its esports division, ICON Esports, to Queensland-based BLSS Holdings.
- The deal includes a multi-year earn-out provision where SQID will receive 10% of ICON’s EBITDA for the first two years and 8% in the third year following the transaction.
- ICON Esports is the parent company of the Australian esports and gaming entertainment brand, The Chiefs Esports Club.
‘Esports Hedge Fund’ Manager Scrutinized by Australian Media
Australian media outlets, specifically the Australian Financial Review, have raised significant questions regarding the professional background of Clayton Larcombe and the operational legitimacy of his firm, PAC Capital.
- The Australian Financial Review (AFR) has published multiple reports questioning the professional background, education, and financial claims of Clayton Larcombe and his firm, PAC Capital.
- PAC Capital, which markets itself as a dedicated esports and gaming hedge fund, has invested in notable industry entities including Bayes Esports, Talon Esports, and the betting platform Picklebet.
- Reports challenge the legitimacy of PAC Capital’s claimed $500 million AUD in assets under management, with AFR citing data suggesting significantly lower net assets and questioning the composition of the fund.
One Up Named Official On Demand Esports Platform of NBA 2K
Take-Two Interactive’s 2K Games label has entered into a multi-year partnership with One Up, designating the company as the official on-demand esports platform for the NBA 2K franchise.
- Take-Two Interactive’s 2K Games has entered a multi-year partnership with One Up to serve as the official on-demand esports platform for the NBA 2K franchise.
- The partnership will launch in the fall of 2023 following the September 8 release of NBA 2K24, featuring a series of free-to-enter online tournaments hosted by NBA stars.
- One Up operates two primary platforms: GameChangers OS, an esports SaaS for tournament management, and Play One Up, an on-demand marketplace for skill-based gaming.
ESL FACEIT Group Partners With Appario Global Solutions
The ESL FACEIT Group (EFG) has entered into a partnership with Appario Global Solutions to integrate GhostFrame broadcast technology into its live tournament productions.
- ESL FACEIT Group (EFG) has partnered with Appario Global Solutions to integrate GhostFrame technology into its live esports broadcasts.
- The partnership marks the first time GhostFrame technology has been deployed in an esports arena setting.
- The technology will be utilized to enhance broadcast features, including realistic graphic overlays, hidden camera tracking, and multi-source video feeds.
Mobile Global Esports Forms Strategic Alliance With INFINITY
Mobile Global Esports (NASDAQ: MGAM) has entered into a strategic alliance with the South American esports organization INFINITY to bolster its operational footprint in Latin America.
- Mobile Global Esports (NASDAQ: MGAM) has entered a strategic alliance with the Latin American esports organization INFINITY to expand its presence in Brazil and the broader Latin American market.
- Under the agreement, Mobile Global Esports will manage INFINITY’s gaming events, including 'INFINITY Play,' and assist in the expansion of the organization's gaming centers across the region.
- INFINITY operates gaming houses in Mexico City and Lima, Peru, a training center in Costa Rica, and maintains a roster of over 50 professional players competing in titles such as Dota 2, Valorant, and Free Fire.
Esports Trade Association Launches Consultation Letter Service for O & P Visas
The Esports Trade Association (ESTA) has introduced a new consultation letter service designed to assist professional esports athletes, coaches, broadcast teams, and event organizers in securing U.S. O and P visas.
- The Esports Trade Association (ESTA) has launched a consultation letter service to assist professional esports athletes, coaches, and industry staff in obtaining O and P U.S. visas.
- The service provides formal support letters required for O-1 and P-1A visa petitions, which are essential for foreign nationals entering the U.S. for esports-related work.
- This initiative aims to mitigate the impact of recent visa denials that have hindered the participation of international talent within the U.S. esports ecosystem.
GamerSaloon Claims $100M USD in Prize Payouts
GamerSaloon, a player-versus-player gaming platform, has reached a significant financial milestone by distributing over $100 million in prize money to its users since its inception in 2006.
- GamerSaloon has surpassed $100 million in total prize money payouts to players since its launch in 2006.
- The platform currently reports a user base of 1.5 million registered participants.
- GamerSaloon operates as a skill-based, real-time PVP platform for console and PC gaming, primarily targeting a U.S. audience.
Version1 + Minnesota RØKKR Lays Off Six Employees
The Minneapolis-based esports organization Version1 and Minnesota RØKKR underwent a reduction in force in July 2023, resulting in the termination of six employees.
- Version1 and Minnesota RØKKR laid off six employees on July 25, 2023, following a previous round of approximately seven layoffs on or around June 30, 2023.
- Management provided transparency regarding the staff reductions, having informed employees in early April that significant layoffs would occur by mid-year.
- Affected employees received a severance package consisting of two weeks of pay plus an additional two weeks for every year of service, along with a $2,000 stipend for those who relocated to Minnesota within the last 12 months.
Major Layoffs Hit Esports Engine
Esports Engine, a turnkey esports solutions company and subsidiary of Vindex, implemented a significant workforce reduction in July 2023.
- Esports Engine, a subsidiary of Vindex, laid off approximately 65 employees in July 2023.
- Affected employees reported that the layoffs were implemented immediately and without prior warning.
- The ESL FACEIT Group (EFG), which is backed by the Saudi government’s Public Investment Fund, acquired Vindex and its subsidiaries in March 2023.
ESRB Seeks FTC Approval for ‘Privacy-Protective Facial Age Estimation’ Program
The Entertainment Software Ratings Board (ESRB) has submitted an application to the Federal Trade Commission (FTC) seeking approval for a new "Privacy-Protective Facial Age Estimation" program.
- The Entertainment Software Ratings Board (ESRB) has applied to the Federal Trade Commission (FTC) for approval of a new 'Privacy-Protective Facial Age Estimation' method to verify parental consent under COPPA regulations.
- The proposed system, developed in partnership with Yoti and SuperAwesome, uses facial scanning to estimate a user's age without storing personal identity information, as the image is deleted immediately after the estimation is complete.
- If the system cannot confirm an adult's age, users are prompted to use alternative verification methods, such as providing a payment card, driver’s license, or Social Security number.
Tencent Buys Majority Stake in Techland
Tencent Holdings has acquired a majority stake in the Poland-based game developer and publisher Techland.
- Tencent has acquired a majority stake in the Poland-based game developer and publisher Techland.
- Techland founder and CEO Paweł Marchewka will remain in his current role following the acquisition.
- Techland retains full ownership of its intellectual properties, including the Dying Light, Call of Juarez, and Dead Island series.
FaZe Clan Entertaining Acquisition Offers From GameSquare, Enthusiast Gaming
FaZe Holdings, a publicly traded esports and gaming lifestyle company based in Los Angeles, is currently evaluating potential acquisition offers from two industry competitors: GameSquare and Enthusiast Gaming.
- FaZe Holdings is currently entertaining acquisition offers from two publicly traded competitors: GameSquare and Enthusiast Gaming.
- Potential acquisition deals are expected to involve a combination of an equity swap and a cash infusion.
- FaZe Holdings shareholders recently approved a reverse stock split at a ratio of 1-for-20 or 1-for-30 to be implemented at a future date.