The Esports Advocate
Esports business news: deals, legal, and governance.
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European Union Greenlights Microsoft’s Activision Blizzard Buyout
The European Commission formally approved Microsoft’s $69 billion acquisition of Activision Blizzard in May 2023, concluding that the merger would not significantly harm competition within the European Economic Area (EEA).
- The European Commission has conditionally approved Microsoft’s $69 billion acquisition of Activision Blizzard, diverging from the UK's Competition and Markets Authority which previously blocked the deal.
- Approval is contingent on Microsoft granting free licenses to European consumers and cloud gaming providers, allowing them to stream all current and future Activision Blizzard PC and console games.
- The European Commission determined that Microsoft would lack the incentive to withhold Activision titles from Sony’s PlayStation, noting that Sony holds a 4-to-1 market share advantage over Xbox in the European Economic Area.
10 Questions for FaZe Clan CEO Lee Trink
This commentary examines the precarious financial and operational state of FaZe Clan as of May 2023, framing a series of critical inquiries directed at then-CEO Lee Trink.
- FaZe Clan faces severe financial instability, characterized by a crashing stock price and an inability to secure expected funding to support its growth strategy.
- The organization is pursuing a reverse stock split in an attempt to regain Nasdaq compliance, though this measure does not address the underlying operational and profitability issues.
- Questions have been raised regarding the company's executive leadership, specifically concerning potential austerity measures like pay cuts or bonus freezes amidst the firm's significant value deterioration.
XSET Co-Founder Clinton Sparks Leaves the Company
Clinton Sparks, a co-founder of the Los Angeles-based esports and gaming lifestyle company XSET, has officially stepped down from his position as chief business development officer.
- Clinton Sparks has stepped down from his role as Chief Business Development Officer at the esports and gaming lifestyle company XSET.
- XSET confirmed the departure of Sparks as of May 12, 2023, though the reasons for his exit and whether it was amicable remain unknown.
- While no longer an employee, Sparks retains a stake in the company as a co-founder and co-owner, and his potential ongoing role as an advisor remains unconfirmed.
Akshon Media to Support OWL, CDL Video Content Production During 2023 Season
Akshon Media, a Vancouver-based digital media company, has been appointed as the official content production partner for the 2023 seasons of Activision Blizzard’s franchised esports leagues, the Overwatch League (OWL) and the Call of Duty League (CDL).
- Akshon Media has been named the official content production partner for the 2023 seasons of Activision Blizzard’s Overwatch League (OWL) and Call of Duty League (CDL).
- The partnership continues a pre-existing relationship, as Akshon Media previously supported video production for both leagues during the 2022 season.
- For the Overwatch League, Akshon Media will provide broadcast production support, graphic design, and the production of select video content series.
ESL FACEIT Group Partners With Astralis
The ESL FACEIT Group (EFG) has entered into a strategic partnership with the Danish esports organization Astralis to enhance community engagement within the Counter-Strike: Global Offensive (CS:GO) ecosystem.
- ESL FACEIT Group (EFG) has entered a partnership with the Danish esports organization Astralis to facilitate the creation of over 100 new Counter-Strike: Global Offensive (CS:GO) tournaments.
- The collaboration aims to enhance community engagement by producing exclusive content and events for the FACEIT and Astralis Clan platforms.
- Astralis will utilize the partnership to gain access to new tools for hosting larger tournament formats than it could previously facilitate.
Doug Parsons Joins Moonrock
In April 2023, Doug Parsons joined the New York-based content marketing and media agency Moonrock as its new director of program management.
- Doug Parsons joined New York-based content marketing and media agency Moonrock as director of program management in April 2023.
- Parsons previously served as vice president of sales operations at Infinite Reality, a role he held following the company's July 2022 acquisition of ReKTGlobal until his departure in December 2022.
- During his five-year tenure at ReKTGlobal, Parsons held various leadership roles, including senior account manager and director of account management.
Longtime FaZe Clan Head of Communications Chelsey Northern Exits Company
Chelsey Northern, the longtime Head of Communications for the Los Angeles-based esports and gaming lifestyle organization FaZe Clan, has departed the company.
- Chelsey Northern has departed her role as Head of Communications at FaZe Clan after more than three years with the organization.
- Northern is transitioning to focus full-time on The Untold, a PR and marketing agency she founded in 2022.
- The Untold specializes in vision planning and storytelling roadmaps, with a client roster that includes FaZe Clan, Deadfellaz, Futurverse, Atlantic Records, and Warner Music Group.
Nerd Street Gamers Plans Second Collegiate-Focused Localhost at Albright College
Nerd Street Gamers has announced plans to develop a second collegiate-focused esports facility, known as a Localhost, at Albright College in Reading, Pennsylvania.
- Nerd Street Gamers is partnering with Playfly Esports to build a 6,800-square-foot collegiate esports facility at Albright College in Reading, Pennsylvania.
- The new venue is scheduled to open in 2024 and will feature 60 gaming stations, a 5 vs. 5 competition stage, a café, team rooms, and office space.
- The facility will operate under the 'Localhost' brand, serving as a public-facing venue when not in use by the college.
T1 Base Camp to Open in Seoul
The South Korean esports organization T1 Entertainment & Sports is expanding its physical footprint with the launch of a new fan-focused facility, T1 Base Camp, located in the Hongdae district of Seoul.
- T1 Entertainment & Sports is opening a new fan-focused facility called 'T1 Base Camp' in Seoul’s Hongdae district on May 13, 2023.
- The facility will feature an esports stage, a merchandise store, and multiple LED screens for broadcasting live League of Legends matches.
- Specific financial details regarding the project, including construction costs and total square footage, have not been disclosed.
MNM Gaming Names Aimlabs its Training Partner
The UK-based esports organization MNM Gaming has established a strategic partnership with Aimlabs, designating the platform as its official training partner for the remainder of 2023 and throughout 2024.
- UK-based esports organization MNM Gaming has entered a partnership with Aimlabs to serve as its official training partner through the remainder of 2023 and into 2024.
- Financial terms of the partnership agreement between MNM Gaming and Aimlabs were not disclosed.
- As part of the deal, MNM Gaming fans receive access to three in-game weapon skins on the Aimlabs platform inspired by the Chinese story 'The Journey To The West.'
Deutsche Lufthansa Becomes Jing Dong Gaming’s Exclusive Airline Partner
Deutsche Lufthansa AG has entered into a strategic partnership with the Chinese esports organization Jing Dong Gaming (JDG), establishing the German carrier as the team’s exclusive airline partner for international competitions.
- Deutsche Lufthansa AG has signed a partnership agreement to become the exclusive airline partner for the Chinese esports organization Jing Dong Gaming (JDG).
- The partnership focuses on providing travel support for JDG during their participation in international esports tournaments.
- Financial terms of the sponsorship deal between the German airline and the esports organization were not disclosed.
G2 Esports Partners With Jägermeister
Berlin-based esports organization G2 Esports entered into a partnership with the spirits brand Jägermeister in May 2023.
- G2 Esports has entered a partnership with spirits brand Jägermeister, marking the liquor company's first-ever sponsorship deal within the esports industry.
- The partnership includes the creation of an original content series, social media marketing, and brand placement on G2 Esports jerseys, subject to regional league restrictions on alcohol advertising.
- The companies scheduled a launch activation event, the 'Jägermeister x G2 Party,' for May 12, 2023, at the 26 Leake Street venue in London.