The Esports Advocate
Esports business news: deals, legal, and governance.
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Ben Goldhaber Joins GGWP to Lead Marketing Efforts
Ben Goldhaber, the former CEO and co-founder of the esports community app Juked, has joined GGWP to lead the company’s marketing efforts.
- Ben Goldhaber, former CEO and co-founder of Juked, has joined the AI-powered game moderation company GGWP to lead its marketing efforts.
- GGWP recently announced it is making its anti-toxicity moderation tools available for free to all game developers.
- The company secured $10 million in a funding round led by Samsung Ventures and SK Telecom Ventures in July 2023, following a $12 million seed round in March 2022.
Microsoft, Activision Blizzard Extend Deal Deadline to October
Microsoft and Activision Blizzard have formally extended the deadline for their proposed $69 billion acquisition from July 18 to October 18, 2023.
- Microsoft and Activision Blizzard have extended the deadline for their $69 billion acquisition from July 18, 2023, to October 18, 2023, to resolve remaining regulatory concerns.
- If the deal is not completed by August 29, Microsoft will owe a $3.5 billion termination fee, which increases to $4.5 billion if the deal remains incomplete by September 18.
- The extension allows both companies to address regulatory requirements in the UK, where Microsoft and the Competition and Markets Authority (CMA) have entered a two-month legal pause to negotiate a potential compromise.
Blizzard Entertainment Record Sales Boost Activision Blizzard Q2 Profits to $587M
Activision Blizzard reported strong financial performance for the second quarter of 2023, driven primarily by record-breaking sales within its Blizzard Entertainment segment.
- Activision Blizzard reported a net income of $587 million for Q2 2023, a 109.6% increase compared to $280 million in the same period of 2022.
- Total net revenue reached $2.21 billion, representing a 34.8% growth year-over-year from $1.64 billion.
- Blizzard Entertainment segment revenue surged 160% year-over-year to $1.05 billion, driven primarily by the launch of Diablo IV, which attracted over 10 million players in June.
Shenzhen Government Offers Financial Incentives to Create an ‘International Esports City’
The Shenzhen municipal government has launched a three-year financial incentive program designed to transform the city into a global hub for the esports industry.
- The Shenzhen municipal government has launched a three-year policy initiative aimed at transforming the city into an 'international esports city' through targeted financial incentives.
- Companies building international-level esports venues in Shenzhen are eligible for a one-off allowance of up to ￥10M ($1.39M USD), capped at 30% of paid-in capital.
- Shenzhen-based game publishers that develop major esports titles for international competition can receive a one-off allowance of up to ￥5M ($700K).
GRID Partners With Abios
Abios, a subsidiary of the Malta-based Kambi Group, has entered into a strategic data partnership with GRID, an in-game data solution provider.
- Abios, a subsidiary of Kambi Group, has entered a data partnership with esports data solutions provider GRID.
- GRID will supply Abios with real-time data from tier-one Counter-Strike: Global Offensive, Valorant, and Dota 2 tournaments.
- The integration of GRID’s data is intended to enhance Abios’s esports odds feeds and widgets by enabling higher market uptime and increased automation in odds modeling.
Guild Esports Partners With PIXELS AI
London-based, publicly traded esports organization Guild Esports has entered into a one-year partnership with PIXELS AI, an artificial intelligence-driven video distribution and digital advertising service.
- Guild Esports has entered into a one-year partnership with PIXELS AI to monetize its owned video content through AI-driven distribution and digital advertising.
- The partnership marks the first entry of PIXELS AI into the gaming and esports sector.
- Revenue generated from the AI-powered platform will be shared between Guild Esports and PIXELS AI based on established publisher agreements.
Tencent Details Peacekeeper Elite Esports Plan
Tencent has unveiled its strategic roadmap for the Peacekeeper Elite esports ecosystem in China, emphasizing increased commercial integration, technological innovation, and international expansion.
- Tencent has signed a three-year strategic partnership with China Mobile, granting the carrier's Migu platform media rights to broadcast the Peace Elite League (PEL) and requiring teams to produce content for the platform.
- The PEL Summer Split Finals will be held at the Shanghai Oriental Sports Center with a total prize pool of ￥11.24 million RMB ($1.56 million USD).
- Tencent is integrating real-time heart rate monitoring for players into the PEL broadcast to increase audience engagement.
The Other Shoe Drops: Sony Agrees to 10-Year Call of Duty Deal for PlayStation Platforms
In July 2023, Microsoft and Sony reached a binding 10-year agreement to maintain the availability of the Call of Duty franchise on PlayStation platforms.
- Microsoft and Sony have signed a binding 10-year agreement to keep the Call of Duty franchise available on PlayStation consoles following Microsoft's acquisition of Activision Blizzard.
- This agreement removes the final major industry holdout, as Sony joins other platforms like Nintendo, Nvidia, and Valve in securing long-term access to the Call of Duty franchise.
- The deal represents a critical milestone for Microsoft's $69 billion USD acquisition of Activision Blizzard, significantly reducing the likelihood of successful opposition from global regulatory agencies.
Tencent Reveals CrossFire 2023 Esports Plans
Tencent recently unveiled its strategic roadmap for the 2023 CrossFire esports ecosystem, emphasizing regional integration and continued commercial growth within the Chinese market.
- The CrossFire Pro League (CFPL) has entered a 10-year partnership with Chengdu’s Gaoxin District, relocating all 10 franchised esports teams to the city.
- The CrossFire Stars (CFS) 2023 world championship will be hosted at the Chengdu Gaoxin Gymnasium in December.
- CrossFire has surpassed 1 billion registered players, with a demographic profile that is 95% male.
Crunchyroll Partners With EVO 2023
Crunchyroll and the Evolution Championship Series (EVO) have established a partnership for the 2023 iteration of the fighting game tournament, held August 4–6 at the Mandalay Bay Resort and Casino in Las Vegas.
- Crunchyroll has partnered with the EVO 2023 fighting game tournament, held August 4–6 at the Mandalay Bay Resort and Casino in Las Vegas.
- Both Crunchyroll and EVO are owned in full or in part by divisions of Sony, which facilitated the collaboration.
- EVO 2023 experienced significant growth, recording an 81% increase in player registrations compared to previous events.
G2 Esports, Ralph Lauren Drop 'G2 X Ralph Lauren' Capsule
G2 Esports has launched a collaborative apparel capsule with luxury fashion brand Ralph Lauren, marking a significant expansion of their ongoing partnership.
- G2 Esports and Ralph Lauren have launched a co-branded apparel capsule collection, marking a new phase in their partnership that began in June 2021.
- The collection features a newly designed 'G2 X Ralph Lauren' crest and includes t-shirts, polo shirts, hoodies, tracksuits, and caps.
- The apparel will be worn by G2 Esports athletes and creators, with an official debut scheduled for the League of Legends EMEA Championship (LEC) Summer Playoffs in Berlin.
Galaxy Racer and RTE Merger Continues to Take Shape
Riva Technology and Entertainment (RTE), a subsidiary of MSM Corporation International Limited, has formalized an implementation agreement to acquire the remaining equity of the esports organization Galaxy Racer (GXR).
- Riva Technology and Entertainment (RTE) and Galaxy Racer (GXR) have signed a formal implementation agreement to finalize their merger, with an expected closing date by the end of August 2023.
- The merged entity will be rebranded as 'Celestial' and will operate as a media and sports conglomerate with a primary focus on the MENA region and the Indian subcontinent.
- Following the acquisition of all remaining GXR shares, GXR will represent 75% of the total value of the combined RTE and MSM Corporation International group.