The Esports Advocate
Esports business news: deals, legal, and governance.
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Copenhagen Flames Shut Down, File for Bankruptcy
The Danish esports organization Copenhagen Flames officially ceased operations and filed for bankruptcy in May 2023, resulting in the termination of its entire staff.
- Danish esports organization Copenhagen Flames officially filed for bankruptcy and ceased operations on May 1, 2023.
- The closure resulted in the termination of the entire staff, including all personnel associated with the organization's men's and women's Counter-Strike: Global Offensive (CS:GO) rosters.
- CEO Steffen Thomson stated that the organization failed to secure necessary funding despite six months of intensive efforts to raise capital.
Mercedes-Benz Korea Sponsors T1 Entertainment & Sports
Mercedes-Benz Korea has entered into a sponsorship agreement with the South Korean esports organization T1 Entertainment & Sports.
- Mercedes-Benz Korea has signed a sponsorship deal with the esports organization T1 Entertainment & Sports, marking the brand's first partnership with a South Korean esports team.
- The agreement effectively ends the previous partnership between T1 and BMW, which had been in place since April 2020.
- As part of the new deal, the Mercedes-Benz logo will be prominently displayed on the center of T1 team jerseys, debuting at the League of Legends Mid-Season Invitational in London (May 2–21, 2023).
Poison Pill: CMA Ruling Includes 10-Year Prohibition on Microsoft’s Activision Blizzard Takeover
The UK’s Competition and Markets Authority (CMA) has formally blocked Microsoft’s proposed $69 billion acquisition of Activision Blizzard, citing significant concerns regarding the impact on the domestic game streaming market.
- The UK's Competition and Markets Authority (CMA) has formally blocked Microsoft’s $69 billion acquisition of Activision Blizzard, citing concerns over the impact on the game streaming market.
- The CMA’s final report includes a 10-year prohibition preventing Microsoft from attempting to merge with Activision Blizzard, barring a significant change in circumstances.
- Both Microsoft and Activision Blizzard have publicly announced their intention to appeal the CMA's decision.
Talon Esports Extends Paris Saint-Germain Partnership for Three More Years
Paris Saint-Germain (PSG) and Talon Esports have formally extended their multi-year partnership for an additional three years.
- Paris Saint-Germain (PSG) Esports and Talon Esports have extended their multi-year partnership for an additional three years.
- The renewed agreement focuses on operating League of Legends rosters under the 'PSG Esports' brand within the Pacific Championship Series in Southeast Asia.
- The collaboration will prioritize talent development, an athletic approach to competitive gaming, and the pursuit of regional commercial partnerships and content creation.
Talon Esports Renews Partnership With SteelSeries
Talon Esports, a prominent organization based in Southeast Asia, has formally extended its partnership with gaming peripherals manufacturer SteelSeries.
- Talon Esports has renewed its partnership with gaming peripherals company SteelSeries for the 2023 calendar year.
- Under the agreement, SteelSeries will continue to serve as the official gaming peripherals partner for Talon’s Dota 2 team.
- The partnership includes the provision of SteelSeries hardware to the team and ongoing collaboration on product testing and development.
Durex Signs Partnership Deals With League of Legends Pro League, MSI, and Worlds
Durex has entered into a series of partnership agreements with Riot Games, marking the brand’s first official foray into the League of Legends esports ecosystem.
- Durex has signed partnership deals with Riot Games for the League of Legends Pro League (LPL), the Mid-Season Invitational (MSI), and the League of Legends World Championship (Worlds).
- The partnership marks the first time Durex has sponsored League of Legends esports properties, with financial terms of the agreement remaining undisclosed.
- The brand will make its debut as a sponsor at the 2023 Mid-Season Invitational, which is scheduled to take place in London from May 2–21, 2023.
Former Epic, Riot Exec Mike Seavers Joins Yuga Labs
Yuga Labs, a prominent Web3 and NFT company, has appointed Mike Seavers as its new chief technology officer, effective May 22, 2023.
- Mike Seavers, former EVP of Development at Epic Games and former CTO at Riot Games, has been appointed as the new Chief Technology Officer of Yuga Labs, effective May 22, 2023.
- Seavers replaces outgoing CTO Kerem Atalay, who will transition into a role as a strategic advisor for the company.
- Yuga Labs is a prominent web3 and NFT company known for properties including Bored Ape Yacht Club, Otherside, CryptoPunks, 10KTF, and Meebits.
Battlegrounds Mobile India Return: Q2 2023 Market Analysis
A financial analysis from Samsung Securities indicates that Battlegrounds Mobile India (BGMI) is expected to resume operations in India during the second quarter of 2023.
- Samsung Securities predicts that Krafton’s Battlegrounds Mobile India (BGMI) will resume service in India during Q2 2023.
- The Indian government previously banned BGMI on July 28, 2022, due to ongoing concerns regarding user data security.
- Prior to its suspension, BGMI generated approximately KRW 30 billion in sales during the final quarter of active operation.
Cloud9 Strengthens Partnership Team With New Hires
The Los Angeles-based esports organization Cloud9 has expanded its internal partnerships department with the appointment of two new managers, Meghan Anderson Luo and Brian Tran.
- Cloud9 has expanded its partnerships department by hiring Meghan Anderson Luo as a partnerships manager and Brian Tran as a partnerships account manager.
- Meghan Anderson Luo joins Cloud9 from King and Country, bringing prior experience from Immortals, where she served as a partnerships activations manager and partnership coordinator.
- Brian Tran joins the organization after previously holding a similar role at Gen.G Esports for over a year.
UK’s Competition and Markets Authority Blocks Microsoft’s Acquisition of Activision Blizzard
The UK’s Competition and Markets Authority (CMA) formally blocked Microsoft’s proposed $69 billion acquisition of Activision Blizzard in April 2023.
- The UK’s Competition and Markets Authority (CMA) has officially blocked Microsoft’s proposed $69 billion acquisition of Activision Blizzard.
- The regulatory rejection is primarily driven by concerns regarding the impact on the cloud gaming market, rather than potential exclusivity of the Call of Duty franchise.
- The CMA concluded that Microsoft’s proposed remedies for the cloud gaming sector were insufficient, citing a failure to support diverse business models and non-Windows PC operating systems.
Challengermode Selected as Official Platform Partner of IESF World Esports Championship Qualifiers
The International Esports Federation (IESF) has appointed the Sweden-based esports platform Challengermode as the official platform partner for the global qualifiers of its 15th World Esports Championship.
- The International Esports Federation (IESF) has appointed Sweden-based platform Challengermode as the official platform partner for the 15th World Esports Championship qualifiers.
- Regional qualifiers hosted on the Challengermode platform begin on May 1, covering Europe, Africa, the Americas, Asia, and Oceania.
- The tournament features a multi-title lineup including Counter-Strike: Global Offensive, Dota 2, PUBG Mobile, TEKKEN 7, eFootball, and Mobile Legends: Bang Bang.
OverActive Media Reports $27.1M Net Loss for 2022
OverActive Media reported a net loss of $27.1 million for the 2022 fiscal year, a significant increase from the $14.23 million loss recorded in 2021.
- OverActive Media reported a $27.1 million net loss for 2022, largely driven by $25.11 million in impairment charges related to its Overwatch League and Call of Duty League assets.
- The company reduced the book value of its Overwatch League assets to $4.44 million and its Call of Duty League assets to $1.8 million, citing macroeconomic conditions and Activision Blizzard’s failure to generate sufficient league revenue.
- Total revenue remained stagnant at $10.42 million in 2022 compared to $10.39 million in 2021, despite a 23% year-over-year revenue increase in the business operations segment to $5.98 million.