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RTE Signs LOI to Acquire Galaxy Racer
Riva Technology and Entertainment Limited (RTE), a subsidiary of MSM Corporation International Limited, has signed a non-binding letter of intent to acquire the remaining shares of the Dubai-based esports organization Galaxy Racer.
- Riva Technology and Entertainment Limited (RTE) has signed a non-binding letter of intent to acquire the remaining shares of the Dubai-based esports organization Galaxy Racer.
- Upon completion of the acquisition, RTE and Galaxy Racer will be consolidated under a new holding company named 'Celestial' to form a media and sports conglomerate.
- The new entity, Celestial, will initially focus its operations on the MENA region and the Indian subcontinent.
TSM Selling LCS Slot, Plans Move to Another Region
TSM, a prominent Los Angeles-based esports organization, has announced its intention to sell its franchise slot in the League of Legends Championship Series (LCS).
- TSM is selling its League of Legends Championship Series (LCS) franchise slot with an asking price of approximately $20 million USD.
- TSM CEO Andy Dihn stated that the decision to exit the North American league is driven by the organization's inability to win a championship, rather than financial concerns.
- The organization plans to continue competing in League of Legends by moving its team to a different international region, though no specific destination has been confirmed.
FaZe Clan Cuts 40% of Staff
FaZe Clan, a publicly traded esports and gaming lifestyle organization, initiated a significant workforce reduction in May 2023, cutting approximately 40% of its staff.
- FaZe Clan has initiated a 40% reduction in its workforce, marking the second major round of layoffs following a 20% staff cut in February 2023.
- The company reported a net loss of $14.04 million for Q1 2023, an increase from the $9.54 million net loss recorded during the same period in 2022.
- Q1 2023 revenue fell to $12.55 million, representing a 20.6% decline compared to the $15.8 million generated in Q1 2022.
Nodwin Gaming Raises $28M to Fuel its Emerging Markets Expansion
Nodwin Gaming, an Indian gaming and esports media company and subsidiary of Nazara Technologies, has secured $28 million in a new funding round. This investment values the company at $349 million post-money.
- Nodwin Gaming has secured $28 million in a funding round that values the company at $349 million post-money.
- The investment round included participation from Sony Group Corporation, Krafton Inc., Nazara Technologies, Jetsynthesys Private Limited, and Good Game Investment Trust.
- Nodwin Gaming plans to use the capital to expand its esports and gaming ecosystem into emerging markets, leveraging the favorable demographics of youth-heavy regions like India, Africa, and the Middle East.
Battlegrounds Mobile India Is Returning to India Soon
Krafton has officially announced that Battlegrounds Mobile India (BGMI) will return to the Indian market following government approval.
- Krafton has received official government approval to resume operations for Battlegrounds Mobile India (BGMI) in the country.
- The game was originally banned by the Indian government in 2022 due to national security concerns.
- While Krafton confirmed the game will return 'soon,' the company did not disclose a specific launch date or the exact conditions of the re-entry.
Skyesports Secures Hindi Broadcasting Rights for BLAST Paris Major
Skyesports, an India-based esports tournament operator, has secured the exclusive Hindi-language broadcasting rights for the BLAST Paris Major.
- Indian esports operator Skyesports secured exclusive Hindi broadcasting rights for the BLAST Paris Major, the final major tournament for Counter-Strike: Global Offensive.
- The agreement covers the broadcast of the Champions Stage, which took place from May 18 to May 21, 2023.
- Skyesports delivered the Hindi-language coverage to Indian audiences via its official YouTube and Twitch channels.
FaZe Clan Promotes Within for New President and COO
FaZe Clan, a publicly traded esports and gaming lifestyle organization, announced significant leadership changes in May 2023, opting to promote from within to fill key executive roles.
- FaZe Clan has promoted Erik Anderson, formerly VP of esports, to the position of president.
- Christoph Pachler, the company's current CFO, has been appointed to the additional role of chief operating officer.
- The leadership changes follow the resignation of Zach Katz, who served as president and COO and will officially depart the company on May 31, 2023.
Court Greenlights Riot Games’ $100M Settlement
California courts have granted final approval for a $100 million settlement between Riot Games and the California Department of Civil Rights, effectively resolving a gender discrimination class action lawsuit that originated in 2018.
- California courts have granted final approval for a $100 million settlement to resolve a 2018 class-action gender discrimination lawsuit against Riot Games.
- The settlement includes $80 million in direct payments to approximately 1,600 current and former employees and contractors, with the remaining $20 million allocated to legal fees and related expenses.
- Riot Games is required to spend an additional $18 million over the next three years to fund diversity, equity, and inclusion (DEI) programs.
ESL FACEIT Group Partners With 9INE
The ESL FACEIT Group (EFG) has entered into a strategic partnership with the Polish Counter-Strike: Global Offensive organization 9INE.
- ESL FACEIT Group (EFG) has entered into a partnership with the Polish Counter-Strike: Global Offensive (CS:GO) organization 9INE to utilize the FACEIT platform for community engagement and event hosting.
- The partnership allows 9INE to establish a dedicated homebase on the FACEIT platform to connect with Polish-speaking players and fans.
- 9INE will host competitions and tournaments on the platform where participants can earn FACEIT points, cash, and team-branded merchandise.
Burger King Sponsors Weibo Gaming
The Chinese esports organization Weibo Gaming (WBG) has entered into a sponsorship agreement with the American fast-food chain Burger King.
- Chinese esports organization Weibo Gaming (WBG) has entered into a sponsorship agreement with the fast-food chain Burger King.
- The partnership focuses on content creation for the Chinese social media platform Weibo, which is the parent company of WBG.
- Burger King will be included on WBG’s official sponsor list, though the brand will not feature its logo on the team’s jerseys.
FaZe Clan Q1 2023 Financial Results
FaZe Clan’s financial performance for the first quarter of 2023 highlights a period of significant fiscal instability, characterized by declining revenues and rising operational costs.
- FaZe Clan reported a net loss of $14.04M for Q1 2023, an increase from the $9.54M loss recorded in the same period of 2022.
- Total revenue fell 20.6% year-over-year to $12.55M, driven by declines in both brand sponsorships and content business revenue.
- The company’s cash position dropped to $26.83M as of March 31, 2023, down from $37.21M at the end of Q1 2022.
OTK’s Starforge Systems Named PC Supplier of Sentinels
Starforge Systems, the PC-building venture owned by the gaming and entertainment collective One True King (OTK), has entered into a strategic partnership with the Los Angeles-based esports organization Sentinels.
- Starforge Systems, the PC-building company owned by the content collective One True King (OTK), has been named the official PC supplier and partner for the esports organization Sentinels.
- Under the partnership, Starforge Systems will provide its 'Voyager Creator Elite' PCs to all Sentinels esports rosters, office facilities, and content creators.
- The Voyager Creator Elite units, which retail for approximately $3,000, feature an Intel Core i7-13700K processor, a GeForce RTX 4070Ti graphics card, 32GB of DDR5 memory, and 2TB of storage.